U.S. Secretary of Commerce Gina Raimondo testifies at a House Science, Space, and Technology Committee hearing titled “Chip on the Desk: An Impact on CHIPS and One-year review of the Science Act”. 2023.
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British SemiconductorThe company’s Arizona subsidiary will receive up to $6.6 billion in U.S. government funding under a preliminary deal announced by Joe Biden’s administration on Monday.
Under the non-binding agreement, the funding will support TSMC’s more than $65 billion investment in building three cutting-edge manufacturing plants in Phoenix, Arizona, under the U.S. Chip and Science Act.
The Taiwanese multinational semiconductor company is also eligible for approximately $5 billion in proposed loans under the CHIPS Act.
U.S. Commerce Secretary Gina Raimondo said at a press conference that the agreement was significant, adding that the cooperation with TSMC would bring “the manufacturing of the world’s most advanced chips to American soil.”
Raimondo said the funding will include $50 million to train and develop local talent in Arizona, where TSMC has created more than 25,000 jobs and attracted 14 semiconductor suppliers.
The Chip Act, passed in August 2022, is a nearly $53 billion package aimed at building a domestic U.S. chip industry to boost the country’s economy and better compete with competitors such as China for national security purposes compete.
The legislation provides billions of dollars in incentives for companies to produce wafers in the United States on the condition that they not expand certain semiconductor manufacturing operations in China and other countries considered national security risks.
On Monday, Commerce Secretary Raimondo praised TSMC’s investment in Arizona, the largest such foreign investment in the state’s history, as evidence of strong chip leadership from the Biden administration and the U.S. Congress.
TSMC is a global leader in semiconductor manufacturing, producing the vast majority of the world’s leading logic chips used in emerging technologies such as artificial intelligence.Its Arizona factory is expected to supply chips to customers including Apple AMD.
Other companies receiving funding under the CHIPS Act include GlobalFoundries; microchipBAE Systems and IntelUp to $8.5 billion in indirect funding and up to $11 billion in loans were secured last month.
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