TSMC Secures $11.6 Billion Funding, Increases US Investment to $65 Billion

Taiwan Semiconductor Manufacturing Company (TSMC) has recently made significant strides in expanding its presence in the United States. The company has been awarded a substantial $6.6 billion under the Chips Act, boosting its total US investment from $40 billion to an impressive $65 billion.

This investment will pave the way for TSMC to construct a third fabrication plant in Arizona, where it plans to commence the manufacturing of cutting-edge 2nm integrated circuits (ICs) by the year 2030. This move marks a significant milestone for the semiconductor industry in the US.

US Commerce Secretary Gina Raimondo expressed her enthusiasm, stating, "“For the first time ever, we will be making, at scale, the most advanced semiconductor chips on the planet here in the United States of America.” However, it is worth noting that the US has a rich history in the chip industry, having been a pioneer and dominant player for many decades.

In addition to the $6.6 billion grant, TSMC is set to receive $5 billion in loans and a 25% tax credit on capital expenditures. This financial support underscores the US government's commitment to fostering semiconductor manufacturing within its borders.

Raimondo further revealed that 14 suppliers are gearing up to either establish new facilities or expand existing ones in the US to cater to the demands of TSMC's fabrication plants. This ecosystem of suppliers will play a crucial role in supporting TSMC's operations and ensuring a seamless supply chain.

Looking ahead, TSMC's initial fab in Arizona is scheduled to commence production of 4nm chips by 2025. Subsequently, the second fabrication plant will focus on manufacturing 3nm and 2nm chips starting in 2028, while the newly announced third fab will specialize in producing 2nm chips, solidifying TSMC's position at the forefront of semiconductor technology.

Meanwhile, TSMC has also secured a substantial investment from the Japanese government, amounting to around $8 billion. This funding will enable TSMC to establish two fabrication plants in Japan, further expanding its global footprint and technological capabilities.