TSMC to receive US$6.6 billion in U.S. subsidies for Arizona chip fabs

Washington, April 8 (CNA) Taiwan Semiconductor Manufacturing Co.'s (TSMC) United States subsidiary will receive US$6.6 billion in U.S. government grants and up to US$5 billion in loans to support advanced semiconductor production in the U.S., the U.S. Department of Commerce announced Monday.

The department said the grants and loans were part of a preliminary agreement with the Hsinchu-based chipmaker under the 2022 CHIPS and Science Act.

Under the deal, TSMC will expand its planned investment by US$25 billion to US$65 billion and build a third fab under its Arizona-based subsidiary by 2030.

TSMC will also produce the world's most advanced 2 nanometer process technology at its second Arizona fab, with production beginning in 2028, the company said.

TSMC's first Arizona plant producing 4nm technology is scheduled to begin production in the first half of 2025.

In a statement, TSMC CEO C.C. Wei (魏哲家) said the agreement would help its U.S. customers, which include Apple, Nvidia and AMD, "unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona."

"We are thrilled by the progress of our Arizona site to date and are committed to its long-term success," Wei said.

U.S. Secretary of Commerce Gina Raimondo said the leading-edge semiconductors that will be made in Arizona under the deal were "foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing."

The US$65 billion investment by TSMC will be the largest foreign direct investment on a completely new project in U.S. history.

According to U.S. estimates, the three fabs are also expected to create approximately 6,000 manufacturing jobs and 20,000 jobs in construction.