The US has allocated $6.6 billion to TSMC to increase domestic chip production

The US Department of Commerce has allocated $6.6 billion in subsidies to TSMC's US unit to develop its advanced semiconductor manufacturing facility in Phoenix, Arizona. In addition, the company will receive up to $5 billion in low-interest government loans.

Here's What We Know

TSMC is committed to expanding its investments by $25-65 billion and building a third fab in Arizona by 2030. This indicates that the US wants to reduce its dependence on China and Taiwan in the chip industry and expand its own capacity.

The government stressed the importance of this project for the country's economy and security, as semiconductors have already become a key element of various technologies, including promising artificial intelligence.

TSMC plans to produce the most advanced 2-nanometre chips at its future fab. The company has previously announced that it wants to invest $40 billion in Arizona. TSMC expects to start mass production at its first fab in the US by the first half of 2025.

Flashback

TSMC is a Taiwanese semiconductor company, as well as the world's largest contract chipmaker and a major supplier to Apple, Nvidia, AMD and other tech giants. Its technology is known for its high performance and advanced chip manufacturing process. TSMC is also known for innovations in 5G, artificial intelligence and other technologies.

Source: Reuters