Tech | Visa | Scholarship/School | Info Place

U.S. to provide TSMC with $660 million in grants and $5 billion in loans to bolster chip manufacturing in Arizona

U.S. Department of Commerce explain On Monday, TSMC signed an agreement to provide TSMC with $6.6 billion in direct funding under the Chip and Science Act to establish a semiconductor factory in Phoenix, Arizona, and provide loans of up to $5 billion.

The grant, targeted at the company’s U.S. unit TSMC Arizona, is the latest move by the U.S. to bolster domestic semiconductor supplies as it seeks to bring chip manufacturing back home amid rising geopolitical tensions between the U.S. and China.

The Chip Act, which will be signed into effect in 2022, provides for an investment of approximately US$280 billion to promote domestic chip research and production in the United States, of which approximately US$52 billion will be used to subsidize domestic chip manufacturing. In addition to national security concerns over semiconductors made primarily in Asia, a big motivation for the United States is to diversify semiconductor production and move more electronics production to the West. The main purpose of the bill is to attract domestic manufacturing in the United States and prohibit fund recipients from expanding their semiconductor manufacturing operations in China.

With the new investment, Taiwan’s TSMC, the world’s largest semiconductor maker, is expanding plans to expand its manufacturing plant in Arizona. The company said that in addition to the two manufacturing plants currently under construction, a third manufacturing plant will be built and will produce 2-nanometer or higher chips.The company has previously said it would invest about $40 billion to build factories in the United States

TSMC said its first fab plans to start producing 4nm process chips in the first half of 2025; its second fab will produce 3nm and 2nm chips 2028; The third factory will begin producing 2nm and more advanced chips by the end of this century.

TSMC has invested more than $65 billion in the United States through these projects, which the company said in a statement represents the largest-ever direct investment by a foreign entity in a U.S. greenfield project.

TSMC Arizona will sell its chips to its U.S. customers, which include AMD, Apple, Nvidia and Qualcomm. The company expects the three fabs to create approximately 6,000 direct high-tech, high-wage jobs, as well as more than 20,000 construction jobs.

The White House said last month it had signed an agreement with the Commerce Department to provide Intel with up to $8.5 billion in funding to support U.S. production.

Intel Approximately $20 billion in grants and loans available Its semiconductor manufacturing is subject to the Chip and Science Act. At the same time, Samsung announced an additional investment of $17 billion in Tyler, Texas, and is expected to receive more than $6 billion in funding for its chip factory in Texas.

#U.S #provide #TSMC #million #grants #billion #loans #bolster #chip #manufacturing #Arizona

Leave a Reply

Your email address will not be published. Required fields are marked *