TSMC Wins $6.6 Billion In US Funding To Develop Latest Chips In America Under CHIPS Award

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In a major development, the Biden-Harris Administration has granted the Taiwan Semiconductor Manufacturing Company (TSMC) $6.6 billion in funding under the CHIPS and Science Act to develop three chip fabrication facilities in Arizona. The award follows a preliminary grant in April, after which the Department of Commerce worked with TSMC to ensure that the firm met the requirements of the CHIPS Act. Under the funding, TSMC’s three fabrication facilities at the Arizona site will manufacture semiconductors ranging from the 5-nanometer to 1.6-nanometer (A16) process family technologies.

As part of the release, President Biden asserted that the CHIPS funding shores up the American semiconductor supply chain to plug a US national security gap left open by the migration of advanced semiconductor fabrication away from the United States.

TSMC Arizona Will Manufacture 3-nanometer Chips In 2028, Outlines $6.6 Billion CHIPS Award

As part of its manufacturing plans, TSMC will start manufacturing the first chips in the Arizona site by mid-2025. The firm’s subsidiary, TSMC Arizona, is responsible for production at the US facilities, and its agreement for the $6.6 billion CHIPS for America funding prohibits TSMC Arizona from buying back shares in most cases unless exempted by the agreement.

The $6.6 billion in direct funding by the Biden-Harris Administration is augmented by an additional $5 billion in loans…