Image: © BINGJHEN/Stock.adobe.com
The US is reportedly offering more than $11bn in grants and loans to help TSMC build chip factories in Arizona, following a recent similar investment into Intel.
The US is awarding Taiwan Semiconductor Manufacturing Company (TSMC) billions of dollars in subsidies and loans to boost semiconductor production in the country, as part of a broader goal of improving its share in the chips market.
The award includes $6.6bn in grants and as much as $5bn in loans to help the chipmaker giant build new chip factories in the state of Arizona, Bloomberg reports. The White House shared details on the preliminary agreement and said it will lead to “leading-edge semiconductor manufacturing facilities”.
In a statement, US president Joe Biden claims the country went from producing “nearly 40pc of the world’s capacity” of semiconductors to just more than 10pc. He added that the country is also lacking in the production of “the most advanced chips” which presents “significant economic and national security vulnerabilities”.
With the new investment, Biden claims TSMC will build a third chip factory in Arizona, which will increase its total investment in Arizona to $65bn and create more than 25,000 “direct construction and manufacturing jobs”.
The investment is connected to the US Chips and Science Act, which aims to boost US semiconductor research, development and production.
“These facilities will manufacture the most advanced chips in the world, putting us on track to produce 20pc of the world’s leading-edge semiconductors by 2030,” Biden said. “The agreement also dedicates $50m of Chips funding to training and developing the local workforce, so workers don’t have to leave their hometowns to find good-paying jobs in innovative industries.”
The US has been on a spending spree recently to boost its domestic production of semiconductors. Last month, the US government said it would give Intel $8.5bn to help the chipmaker boost domestic production.
In February, the US said it expects to invest more than $5bn in its semiconductor R&D industry under the Chips and Science Act.
Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.
