On July 28, 2023, the logo of Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) can be seen at the opening ceremony of the TSMC Global R&D Center in Hsinchu.
Amber Wang | AFP | Getty Images
The U.S. Commerce Department said on Friday it had finalized $6.6 billion in government subsidies British Semiconductor The company’s U.S. semiconductor manufacturing operations are located in Phoenix, Arizona.
Binding contract – after a period of time preliminary agreement Announced in April – the first major award completed under the $52.7 billion program created in 2022.
Just weeks before President-elect Trump criticize the plantook office.
In April this year, TSMC agreed to expand planned investment by US$25 billion to US$65 billion and add a third wafer fab in Arizona by 2030.
The Taiwanese company will produce the world’s most advanced 2-nanometer technology at its second factory in Arizona, with production expected to begin in 2028. “A16”.
“When we started doing this, there were a lot of naysayers saying TSMC might produce 5 or 6 nanometer technology in the United States,” U.S. Commerce Secretary Gina Raimondo said in an interview. “In fact, they State-of-the-art chips are being produced in the United States.”
TSMC’s incentives also include up to $5 billion in low-cost government loans. Under the agreement, TSMC will receive cash when project milestones are reached. A senior official told reporters that the Commerce Department expects to release at least $1 billion to TSMC by the end of the year.
TSMC agreed to forgo stock buybacks for five years (with some exceptions) and share any excess profits with the U.S. government under the agreement. “Upside Sharing Agreement”.
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TSMC CEO CC Wei said in a statement that the deal “helps us accelerate the development of the most advanced semiconductor manufacturing technology in the United States.”
Congress to approve Chip and Science Act in 2022 Increase domestic semiconductor productionRaimondo said this was critical to securing TSMC and other chip investment. The United States currently does not produce any cutting-edge chips.
“This didn’t happen by itself… We have to convince TSMC that they want to expand,” Raimondo said, adding that officials also had to convince U.S. companies to buy U.S.-made chips. “The market does not trade at the expense of national security.”
The Commerce Department has allocated $36 billion for chip projects, including $6.4 billion for Texas-based Samsung 005930.KS , $8.5 billion for Intel INTC.O and $6.1 billion for Micron Technology MU.O . The Commerce Department is working to finalize these agreements before Biden leaves office on January 20.
Reuters reported that Commerce Department orders orders from TSMC on Saturday Stop shipping advanced chips to Chinese customers.
Raimondo did not confirm that the department issued instructions to TSMC, but said the United States needs to engage in offensive and defensive efforts with China.
“Investing in TSMC’s expansion here is an offense, and the defense is to ensure that neither TSMC nor any other company sells our most advanced technology to China and violates our export controls,” Raimondo said, adding that she did not It’s not that TSMC has done anything illegal.
“We take national security seriously and we investigate every potential issue, whether it’s with a company we subsidize or not,” she added.
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