The US Department of Commerce announced on Monday, April 8th, that it will provide TSMC with a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona. In addition to the subsidy, the department will also offer low-cost government loans of up to $5 billion.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, is set to benefit from this significant investment as part of efforts to strengthen semiconductor manufacturing capabilities in the United States. The partnership aims to enhance the country’s semiconductor supply chain and reduce its reliance on foreign manufacturers.
TSMC’s expansion in Phoenix is expected to create new job opportunities and boost the local economy in Arizona. The company’s cutting-edge semiconductor production technologies will contribute to the development of critical industries such as electric vehicles, 5G technology, and artificial intelligence.
This collaboration reflects the growing importance of semiconductor production and supply chain security in the wake of global challenges and disruptions. The US government’s support for TSMC’s operations in Phoenix underscores its commitment to promoting domestic semiconductor manufacturing and innovation.
With the provision of substantial subsidies and loans, TSMC is poised to further establish its presence in the US market and drive advancements in semiconductor technology. The investment is anticipated to have a far-reaching impact on the semiconductor industry and economic landscape, positioning TSMC and the US as key players in the global semiconductor market.