US Commerce Secretary Gina Raimondo testifies during a House Science, Space, and Technology Committee hearing titled “Chips on the Table: A One-Year Review of the Chip and Science Act,” at the Rayburn Building in Washington, D.C., on September 19. 2023.
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TSMCIts Arizona subsidiary is set to receive up to $6.6 billion in US government funding under a preliminary agreement announced by the Joe Biden administration on Monday.
The financing, under the U.S. Chip and Science Act, will support TSMC's investment of more than $65 billion in three advanced manufacturing plants in Phoenix, Arizona, according to the non-binding agreement.
The Taiwanese multinational semiconductor company is also eligible for about $5 billion in loans proposed under the CHIPS Act.
US Commerce Secretary Gina Raimondo said in a press conference that the agreement is “huge,” adding that the partnership with TSMC will bring “the world's most advanced chip manufacturing to American soil.”
According to Raimondo, the funds will include $50 million to train and develop local talent in Arizona, where TSMC Arizona has already created more than 25,000 jobs and attracted 14 semiconductor suppliers to the state.
The CHIP Act, passed in August 2022, is a roughly $53 billion package aimed at building up the U.S. domestic chip industry to boost the country's economy and better compete with rivals like China for national security purposes.
The legislation provides billions in incentives to companies to produce chips in the United States, provided they do not expand certain semiconductor manufacturing operations in China and other countries considered a national security risk.
On Monday, Commerce Secretary Raimondo praised TSMC's investment in Arizona, the largest foreign investment of its kind in the state's history, as evidence of strong chip leadership from the Biden administration and the US Congress.
TSMC is the world's leading semiconductor manufacturer and makes the vast majority of the world's leading logic chips, used in emerging technologies such as artificial intelligence. Its factories in Arizona are expected to provide chips to customers including Apple and… AMD.
Other companies that have received funding under the CHIPS Act include GlobalFoundries, chipBAE Systems, as well Intel Corporationwhich secured up to $8.5 billion in indirect financing and up to $11 billion in loans last month.
