TSMC Received $11.6 Billion in Funding from the US Government for its New Chip Production Facility
TSMC receives $11.6 billion funding from the US government under the CHIPS Act managed to provide. The Biden-Harris administration announced that it has taken an important step towards creating a sustainable semiconductor supply chain for the next decade by signing a preliminary agreement with TSMC. According to the agreement, three new chip production facilities belonging to TSMC will be established in the USA.
Construction of the first facility is already underway and is planned to start high-volume production in the first half of next year. TSMC’s second facility will produce 2-nanometer nanosheet chips, thus bringing its US operations to the same level as the facilities in Taiwan.
The third facility will produce chips of 2 nanometers or smaller within ten years, in line with customer demand. TSMC will work with the University of Arizona, Arizona State University and Purdue University to provide training with the US government’s additional funding of $50 million to increase the workforce.
According to the agreement, $6.6 billion was given as direct funding and a loan of $5 billion to establish the facilities. In order for TSMC to receive this funding from the US government, it must ensure that the American chip production capacity is superior to any facility that can be established in China. The company recently had to evacuate its employees due to the earthquake.
