US authorities are planning to provide Taiwan Semiconductor Manufacturing Co. (TSMC) up to $5 billion in loans and $6.6 billion in grants so that the top chipmaker in the world may construct plants in Arizona, in support of President Joe Biden’s initiative to increase domestic production of vital technologies,
In addition to the two facilities in the state that are slated to start production in 2025 and 2028, TSMC plans to build a third facility in Phoenix. The latter is expected to be operational by the end of this decade and will utilize next-generation 2-nanometer process technology – which is crucial for both defense and AI industries, among others.
“The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing”, US Secretary of Commerce Gina Raimondo said in a statement.
In the meanwhile, TSMC claimed in a different statement that it was “on track to begin production leveraging 4nm technology in first half of 2025” at its first fabrication facility in Asia.
The Chips and Science Act, which authorizes $75 billion in government loans and $52.7 billion in manufacturing and research subsidies, was adopted by the US Congress in 2022. So far, the Commerce Department has announced significant subsidies for Intel’s chip production, and according to a source from Reuters, it is planning to do the same for Samsung, so that it may increase its Taylor, Texas-based chip manufacturing operations.
