The United States Commerce Department has provided a financial commitment to Taiwan Semiconductor Manufacturing Company, the Apple chip supplier, to boost chip production within the U.S.
According to Bloomberg, the department disclosed a $6.6 billion subsidy intended to enhance semiconductor manufacturing in Phoenix, Arizona. TSMC is also set to receive $5 billion in loans and may claim an investment tax credit of up to 25% of its capital expenditures. Overall, a total of $11.6 billion.
This initiative is part of the broader CHIPS and Science Act, seeking to boost and improve America's semiconductor manufacturing capabilities. VCPost earlier reported that the Biden Administration also gave financial grants to Intel for this purpose.
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TSMC has already pledged an increased investment of $25 billion, bringing its total investment to a staggering $65 billion, marking the largest foreign direct investment in a brand-new project in U.S. history.
Moreover, TSMC has revealed plans to establish a third fabrication plant in Arizona by 2030.
The inaugural plant is slated to commence production of 4nm chips next year, while the second facility, initially intended for 3nm chips, will also produce 2nm chips by 2028. The third plant will focus on 2nm chips, with the potential to manufacture even more advanced semiconductors in the future.
Given that Apple's most sophisticated chips are presently produced in Taiwan using TSMC's 3nm process, the prospect of manufacturing these chips and potentially more powerful ones domestically represents a major prospective shift in the company's supply chain.
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