On July 28, 2023, the Taiwan Semiconductor Manufacturing Company (TSMC) logo can be seen at the opening ceremony of the TSMC Global R&D Center in Hsinchu.
Amber Wang | AFP | Getty Images
The U.S. Commerce Department said on Friday it has finalized $6.6 billion in government subsidies for TSMC’s U.S. semiconductor production unit in Phoenix, Arizona.
The binding contract is the first major contract to be completed under the $52.7 billion plan set for 2022, following a preliminary agreement announced in April.
It comes just weeks before President-elect Donald Trump, who has criticized the plan, takes office.
April, British Semiconductor Agree to expand planned investment by US$25 billion to US$65 billion and add a third wafer fab in Arizona by 2030.
The Taiwanese company will produce the world’s most advanced 2-nanometer technology at its second factory in Arizona, with production expected to begin in 2028. “A16”.
“When we started doing this, there were a lot of naysayers saying TSMC might produce 5 or 6 nanometer technology in the United States,” U.S. Commerce Secretary Gina Raimondo said in an interview. “In fact, they State-of-the-art chips are being produced in the United States.”
TSMC’s incentives also include up to $5 billion in low-cost government loans.
British Semiconductor
Under the agreement, TSMC will receive cash when project milestones are reached. A senior official told reporters that the Commerce Department expects to release at least $1 billion to TSMC by the end of the year.
TSMC agreed to forego stock buybacks for five years (with some exceptions) and share any excess profits with the U.S. government under a “Rise Sharing Agreement.”
TSMC CEO CC Wei said in a statement that the deal “helps us accelerate the development of the most advanced semiconductor manufacturing technology in the United States.”
Congress approved the Chip and Science Act in 2022 to boost domestic semiconductor production, which Raimondo said is critical to securing TSMC and other chip investments. The United States currently does not produce any leading chips.
“This didn’t happen by itself… We have to convince TSMC that they want to expand,” Raimondo said, adding that officials also had to convince U.S. companies to buy U.S.-made chips. “The market does not trade at the expense of national security.”
The Department of Commerce has allocated US$36 billion for chip projects, of which US$6.4 billion is for chip projects Samsung In Texas, $8.5 billion Intel and $6.1 billion Micron Technology. The Commerce Department is working to finalize these agreements before Biden leaves office on January 20.
Reuters reported on Saturday that the Commerce Department ordered TSMC to stop shipping advanced chips to Chinese customers.
Raimondo did not confirm that the department issued instructions to TSMC, but said the United States needs to engage in offensive and defensive efforts with China.
“Investing in TSMC’s expansion here is an offense, and the defense is to ensure that neither TSMC nor any other company sells our most advanced technology to China and violates our export controls,” Raimondo said, adding that she did not It’s not that TSMC has done anything illegal.
“We take national security seriously and we investigate every potential issue, whether it’s with a company we subsidize or not,” she added.
