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TSMC gets $6.6 billion direct funding to boost U.S. chip manufacturing

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Taiwan Semiconductor Manufacturing Company (TSMC) Manufacturing Plant Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) has received $6.6 billion in funding from the U.S. Department of Commerce to increase chip production.

The Commerce Department and TSMC Arizona have signed a non-binding prelim memorandum of terms (PMT) for up to $6.6 billion in direct funding under the CHIPS and Science Act.

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In May 2020, TSMC shared its plans to invest $12 billion in Phoenix Arizona to build an advanced manufacturing fabrication. Two years later, TSMC announced a second fabrication plant in the state with an increased investment of $40 billion.

This new grant of $6.6 billion allowed the company to set up the third plant in Arizona ramping up the investment to more than $65 billion. It is said to be the largest foreign direct investment in Arizona’s history.

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Taiwan Semiconductor Manufacturing Company (TSMC) Manufacturing Plant Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) Manufacturing Plant Arizona (Image Credit: TSMC)

TSMC mentioned that its new facility will create around 6,000 jobs and more than 20,000 accumulated construction jobs.

According to the company roadmap, TSMC’s first fab will start with a 4-nanometer process technology for semiconductor manufacturing. Its production will start somewhere in the first half of 2025.

The second plant will start operation of 3 nanometer (3NM) and 2 nanometer (2nm) chipset technologies by 2028. The third facility will become operational by the end of this decade. It will be used to produce a more advanced level of chipset.

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The PMT Signed would also give TSMC up to $5 billion in loans. The chipmaker also planned to apply for U.S. Treasury Department Investment Tax Credits of up to 25 percent of qualified capital expenditure at TSMC Arizona.

(source)

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Mel Trivalo is a senior author at EONMSK.com, he began his early career in electronics in 2021 and turned his attention towards Space and Rocket Science. Mel likes to explore new technologies and swings baseball to run through creative thoughts.

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