{"id":644439,"date":"2024-11-16T13:45:39","date_gmt":"2024-11-16T10:45:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-finalizes-up-to-6-6-bn-funding-for-chip-giant-tsmc\/"},"modified":"2024-11-16T13:45:39","modified_gmt":"2024-11-16T10:45:39","slug":"us-finalizes-up-to-6-6-bn-funding-for-chip-giant-tsmc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-finalizes-up-to-6-6-bn-funding-for-chip-giant-tsmc\/","title":{"rendered":"#US finalizes up to $6.6 bn funding for chip giant TSMC"},"content":{"rendered":"
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\n The first of TSMC’s three new facilities in Arizona is set to fully open by early-2025, according to President Joe Biden.
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The United States will award Taiwanese chip giant TSMC up to $6.6 billion in direct funding to help build several plants on US soil, officials said Friday, finalizing the deal before Donald Trump’s administration enters the White House.<\/p>\n

“Today’s final agreement with TSMC \u2013- the world’s leading manufacturer of advanced semiconductors \u2013- will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona,” said President Joe Biden in a statement.<\/p>\n

The Biden administration’s announcement comes around two months before President-elect Trump takes office.<\/p>\n

Trump has recently criticized the CHIPS Act, a major law passed during Biden’s tenure aimed at strengthening the US semiconductor industry and reducing the country’s reliance on Asian suppliers, including Taiwan.<\/p>\n

While the US government has unveiled over $36 billion in grants through this act, including the award to TSMC, much of the funds remain in the due diligence phase and have not been disbursed.<\/p>\n

But once a deal is finalized, funds can start flowing to companies that have hit certain milestones.<\/p>\n

TSMC is the second company after Polar Semiconductor to finalize its agreement.<\/p>\n

“Currently, the United States does not make on our shores any leading-edge chips, and this is the first time ever that we’ll be able to say we will be making these leading-edge chips in the United States,” said Commerce Secretary Gina Raimondo told reporters Thursday.<\/p>\n

“I want to remind everyone that these are the chips that run AI and quantum computing. These are the chips that are in sophisticated military equipment,” Raimondo added.<\/p>\n

Making these chips in the United States, she noted, helps address a national security liability.<\/p>\n

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The first of TSMC’s three facilities is set to fully open by early-2025, Biden noted.<\/p>\n

At full capacity, the three facilities in Arizona are expected to “manufacture tens of millions of leading-edge logic chips that will power products like 5G\/6G smartphones, autonomous vehicles, and high-performance computing and AI app<\/a>lications,” the Commerce Department said.<\/p>\n

It added that “early production yields at the first TSMC plant in Arizona are on par with similar factories in Taiwan.”<\/p>\n

The investment is anticipated to create around 6,000 direct manufacturing jobs.<\/p>\n

A senior US official told reporters on condition of anonymity that they expect at least $1 billion to go to TSMC this year.<\/p>\n

Besides the $6.6 billion in direct funding, the United States is also providing up to $5 billion in proposed loans to TSMC Arizona.<\/p>\n

While the United States used to make nearly 40 percent of the world’s chips, the proportion is now closer to 10 percent\u2014and none are the most advanced chips.<\/p>\n

TSMC shares closed 1.3 percent lower in New York on Friday.<\/p>\n

\n \u00a9 2024 AFP\n <\/p>\n

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\n Citation<\/strong>:
\n US finalizes up to $6.6 bn funding for chip giant TSMC (2024, November 16)
\n retrieved 16 November 2024
\n from https:\/\/techxplore.com\/news<\/a>\/2024-11-bn-funding-chip-giant-tsmc.html\n <\/p>\n

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