US Awards TSMC $6.6 Billion for Arizona Plants

The Biden administration has finalized a $6.6 billion grant to Taiwan Semiconductor Manufacturing Co. (TSMC) under the Chips Act, marking a significant milestone in efforts to bring semiconductor production back to the United States. This legally binding agreement, the first major award under the $52.7 billion program, aims to establish cutting-edge semiconductor manufacturing facilities in Arizona. TSMC will invest $65 billion to construct three plants, with the first expected to open by 2025. The deal, which includes up to $5 billion in loans, ensures the production of advanced 2 nanometre technology chips in the U.S., essential for AI and military applications. The finalized contract secures this investment even as President-elect Donald Trump, who has criticized the Chips Act, prepares to take office. More Chips Act agreements are anticipated in the coming months, reinforcing this initiative as a cornerstone of U.S. industrial policy.