U.S. Boosts Semiconductor Tech with $6.6B TSMC Deal

The U.S. Commerce Department has finalized a $6.6 billion subsidy for Taiwan Semiconductor Manufacturing Co's U.S. unit, marking the first major award under the $52.7 billion Chips and Science Act. This initiative aims to boost domestic semiconductor production in Arizona, using TSMC’s advanced 2-nanometer technology.

The U.S. Commerce Department announced the finalization of a $6.6 billion subsidy agreement for Taiwan Semiconductor Manufacturing Co's (TSMC) U.S. division to bolster semiconductor production in Phoenix, Arizona.

This marks the first major disbursement under the $52.7 billion initiative established in 2022, aimed at enhancing domestic chip production. TSMC will expand its investment to $65 billion and add another facility by 2030, targeting the use of the advanced 2-nanometer technology.

Commerce Secretary Gina Raimondo emphasized the strategic significance of TSMC producing sophisticated chips in the U.S. The agreement includes up to $5 billion in low-cost government loans, with the potential of releasing $1 billion by the year's end.

(With inputs from agencies.)