TSMC Plans $40 Billion Investment in Arizona Factories, Anticipates $5 Billion US Grant
Informed sources expect Taiwan Semiconductor Manufacturing Company (TSMC) to receive a US grant exceeding $5 billion to enhance
its chip manufacturing project in Arizona.
This aligns with President Joe Biden’s efforts to boost the semiconductor manufacturing sector in the United States.
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The sources, requesting anonymity due to the confidential nature of the discussions, state that the grant’s final value is yet to be determined.
It remains unclear whether TSMC will also benefit from loans and guarantees under the Chips Act, enacted in 2022.
Meanwhile, the company, along with other major computer chip producers,
is negotiating with the US Department of Commerce to secure grants totaling around $28 billion to support advanced factories.
Samsung
on the other hand, presented an additional initiative, investing an additional $17 billion in the US to build a new factory in Texas.
Despite reservations about these talks, they are part of significant efforts to boost investments and strengthen local production in this vital sector.
In a related context, Intel, the American competitor to TSMC, confirms ongoing talks to secure over $10 billion in federal incentives,
with at least $3.5 billion allocated for direct grants.
These efforts are part of the Chips Act, allocating nearly $39 billion in direct grants, along with financing options totaling $75 billion
, aiming to attract companies to build projects in the United States after decades of production in Asian regions.
US officials aim to announce more agreements with advanced chip manufacturing companies in the coming days,
with expectations of announcements for three companies so far.
New Factories
It’s worth noting that TSMC plans to invest up to $40 billion to establish factories in Arizona,
a state playing a pivotal role in the chip industry and a key battleground in the anticipated 2024 presidential elections.
Despite facing challenges at its Phoenix factory site, with delays and disputes with local unions,
TSMC achieved progress with a formal labor agreement in December last year.
Overall, the industry is currently witnessing massive investment movements as leading chip companies prepare for qualitative leaps in production,
strengthening their presence in the US market.”
TSMC Plans $40 Billion Investment