TECH

TSMC receives US$6.6 billion subsidy for chip production in the US

The United States Department of Commerce announced this Monday (8) that it will grant Taiwan Semiconductor Manufacturing Co’s (TSMC) a subsidy of US$6.6 billion for chip production in Phoenix, Arizona. Concession comes after a low-profit 2023 due to weak demand for consumer electronics.

TSMC also agreed to expand its planned investment from $25 billion to $65 billion and add a third factory in Arizona by 2030;

This will be the largest foreign direct investment in a completely new project in US history;

The new site will focus on producing the world's most advanced 2-nanometer technology (with a focus on AI), with production expected to begin in 2028;

At full capacity, TSMC's three factories in Arizona will produce tens of millions of cutting-edge chips for 5G/6G smartphones, autonomous vehicles and AI data center servers;

The units will directly support important customers such as Apple, Nvidia, AMD and Qualcomm;

The world's largest outsourced chip manufacturer and an important supplier to Apple and Nvidia, TSMC had already announced investment plans in Arizona;

The company expects to begin mass production at its first U.S. factory by the first half of 2025.

''These are the chips that underpin all artificial intelligence, and they are the chips that are necessary components for the technologies we need to sustain our economy, but frankly, it's a 21st century military and national security apparatus''...Gina Raimondo, Secretary of Commerce, in a statement.

As reported by Reuters, the US bet is based on the Chips and Science Act, approved by the US Congress in 2022. The legislation aims to increase domestic semiconductor production and boost the industry in the US.

According to TSMC CEO CC Wei, the company will help US technology companies “unlock their innovations by increasing cutting-edge technology capabilities through TSMC Arizona.”

TSMC's new unit in the US is expected to create 6,000 direct manufacturing jobs and 20,000 construction jobs. The manufacturer also said that 14 of its direct suppliers also plan to build or expand factories in the US.

In a separate statement, the Taiwanese manufacturer said its factories in Arizona aim to achieve a 90% water recycling rate, adding that the company has begun the design phase of building a water recovery plant to achieve “near-zero net discharge ”.

mundophone