TSMC will get some of its Chips Act money before Trump takes office
The Taiwanese chipmaker will reportedly receive at least $1 billion of the total award this year
The Biden administration has finalized Taiwan Semiconductor Manufacturing Company’s (TSM) Chips Act incentive funding to support its U.S. fabrication sites.
The Taiwanese chipmaker signed a preliminary agreement in April for $6.6 billion in grants from the federal Chips and Science Act. The finalized award comes after the U.S. Commerce Department completed its due diligence process. TSMC is also eligible for up to $5 billion in proposed loans.
TSMC will receive at least $1 billion of the total reward this year due to already meeting some of the required benchmarks, Bloomberg reported, citing Biden administration officials. The award will be disbursed as the company’s fabs in Phoenix, Arizona complete certain project milestones.
The federal funding will go toward TSMC’s $65 billion private investment to build three state-of-the-art chipmaking facilities in Phoenix. TSMC already has two planned facilities in Phoenix that are expected to begin production in 2025 and 2028. Some of the funding will support building the third facility.
“This is the largest foreign direct investment in a greenfield project in the history of the United States,” U.S. President Joe Biden said in a statement. “The first of TSMC’s three facilities is on track to fully open early next year, which means that for the first time in decades an America manufacturing plant will be producing the leading-edge chips used in our most advanced technologies – from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence.”
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