TSMC Secures $6.6 Billion US Subsidy for Arizona Chip Production

The US Commerce Department has awarded Taiwan Semiconductor Manufacturing Co's (TSMC) US unit a hefty $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona. This subsidy comes with an additional $5 billion in low-cost government loans. TSMC has agreed to expand its investment by $25 billion, reaching a total of $65 billion, and plans to add a third fab in Arizona by 2030. The company will be producing cutting-edge 2 nanometer technology at its second Arizona fab, set to commence production in 2028. This move is part of a larger effort by the US government to boost domestic semiconductor output and strengthen national security. TSMC's investment in Arizona is the largest foreign direct investment in a new project in US history, marking a significant milestone in the semiconductor industry. The project is expected to create thousands of direct manufacturing jobs and support the development of advanced packaging capabilities in the US. TSMC's commitment to sustainability is also evident, with plans to achieve a 90% water recycling rate at its Arizona factories. The US government's support for TSMC is part of a broader initiative to bolster the country's semiconductor industry and ensure its competitiveness in the digital age.