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US Bolsters Semiconductor Production with Massive TSMC Funding

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The U.S. government has announced it will provide up to $6.6 billion in support to the Taiwanese semiconductor company TSMC.

TSMC [Photo: Telek]

On the 8th (local time), the U.S. Department of Commerce pledged to provide up to $6.6 billion to expand the facilities that TSMC is constructing in Arizona and to enable the production of cutting-edge semiconductors in the U.S. for the first time.

In response, TSMC announced that it would increase its initially planned investment scale from $25 billion to $65 billion and agreed to add a third factory in Arizona by 2030.

The U.S. government is providing $52.7 billion over five years for the construction of foundries (semiconductor manufacturing under contract) in the U.S. and research and development grants to reduce dependence on Asian suppliers, considered a security vulnerability for the U.S.

Samsung Electronics has also applied for U.S. government subsidies. Reuters reported that it is expected to announce subsidy support for South Korea’s Samsung Electronics sometime next week.

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