Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly on the verge of securing over $5 billion in subsidies for its new Arizona factory, marking a pivotal advancement in President Biden’s initiative to rejuvenate America’s semiconductor manufacturing sector. Despite the buzz, insiders indicate the deal’s finalization remains pending, with uncertainties surrounding TSMC’s utilization of the financial aids offered under the 2022 Chip Law.
This subsidy is part of a broader negotiation involving TSMC alongside giants like Intel, Micron, and Samsung, who are collectively eyeing approximately $28 billion in government subsidies for advanced semiconductor plants in the U.S. TSMC has publicly acknowledged its ongoing discussions with the U.S. Department of Commerce, hinting at positive strides in securing the incentive but without disclosing specifics. Both the Department of Commerce and the White House have refrained from commenting on the matter.
The broader context includes the 2022 Chip Act, which earmarks $39 billion in direct subsidies and an additional $75 billion in financing mechanisms, aimed at incentivizing semiconductor firms to establish manufacturing bases in the U.S. TSMC’s ambitious expansion plans, which also contemplate a $17 billion investment in a Texas facility, align with the U.S. strategic goal of bolstering domestic chip production capabilities.
