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TSMC to receive $6.6 Billion in direct funding for Arizona chip plant

April 8, 2024
in Technology
TSMC to receive $6.6 Billion in direct funding for Arizona chip plant
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The United States Department of Commerce announced a new round of funding for TSMC under the CHIPS and Science Act. TSMC is in line to receive $6.6 billion in direct funding and $5 billion in loans for its semiconductor production in Phoenix, Arizona. TSMC is also eligible to apply for an investment tax credit covering up to 25% of capital expenditures.

TSMC semiconductor manufacturing fab site in Phoenix, Arizona

TSMC semiconductor manufacturing fab site in Phoenix, Arizona

TSMC announced its plans to build a third chipset fab at its Arizona complex in a bid to meet customer demand focused on 2nm chipsets which are expected to begin production by the end of this decade. The Taiwanese semiconductor contract manufacturer has invested upwards of $65 billion across its fabs in Arizona which accounts for the highest foreign direct investment as a project in U.S. history. TSMC plans to begin manufacturing 4nm chips in Arizona by next year, followed by 3nm and 2nm chips in 2028.

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