The United States Commerce Department on Friday, November 15, announced that it finalized a $6.6 billion government subsidy for the US unit of Taiwan Semiconductor Manufacturing Co (TSMC).
The mentioned subsidy is focused on the implementation of semiconductor manufacturing activities in Phoenix, Arizona. It’s worth noting that the preliminary agreement between TSMC and the US Commerce Department was announced in April. In November, the company’s interaction with the regulator is based on the binding contract, which is the first major award to be completed under the $52.7 billion program created in 2022. It is worth noting that Donald Trump, who won the United States presidential election last week, spoke negatively about the mentioned program.
In April, TSMC agreed to increase its planned investments in the activity in the United States by $25 billion, to the $65 billion mark. The company also agreed to add a third manufacturing site in Arizona by 2030.
At one of the plants in the mentioned region of the United States, TSMC will produce the world’s most advanced 2-nanometer technology. Besides, the company agreed to use its most advanced chip manufacturing technology called A16 in Arizona.
The TSMC award also includes up to $5 billion in low-cost government loans. According to the terms of the agreement, the company will receive money as the stages of the project are completed. According to media reports, referring to an insider, the manufacturer will receive at least $1 billion by the end of the current year.
TSMC chief executive officer C.C. Wei said the deal helps the company accelerate the development of the most advanced semiconductor manufacturing technology available in the United States.
As we have reported earlier, Washington Orders TSMC to Halt Shipments to China of Some Chips.
