Taiwanese semiconductor manufacturer TSMC is investing significantly more in its new factory in the US state of Arizona and receiving billions in government funding. On Monday, the US Commerce Department gave the green light to aid worth 6.6 billion dollars (about six billion euros). In addition, there are up to five billion dollars in cheap government loans. At the same time, TSMC pledged to significantly increase its investment in the facility to $65 billion.
A third factory will also be built in Arizona by 2030. At $65 billion, this is the largest investment by a company to date in a completely new factory in the US.
2-nanometer production line planned
TSMC will produce semiconductors with a junction size of two nanometers in one of the halls. “These are the chips that will power artificial intelligence, and they are the chips that will power the technologies that will power our economy and our security apparatus in the 21st century,” said Commerce Secretary Gina Raimondo. TSMC is the world’s largest semiconductor contract manufacturer and a major supplier to Apple and Nvidia.
At the same time, TSMC will work with partners to ensure further processing of the semiconductors in the US, the company said. Many chips are currently being processed into components in Asia. The goal is for customers to be able to purchase modern semiconductors that are produced entirely in the US, the ministry explains.
The US Congress greenlighted the Chips Act in 2022, which includes $52.7 billion in government support for the industry. There is also another $75 billion in loans.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
