US Financial Boost for Semiconductor Giant TSMC

The Biden administration has granted $6.6 billion to TSMC, a leading Taiwanese semiconductor manufacturer, to encourage the construction of production facilities in Arizona. This initiative is part of a broader $52.7 billion CHIPS and Science Act intended to bolster the US semiconductor industry.

TSMC has committed to investing $65 billion to establish three advanced plants in Arizona by 2030, creating thousands of jobs. The plan includes producing cutting-edge chips, starting with 4nm and 5nm process technology by 2025, and progressing to 2nm by the decade's end.

This strategic move aims to diversify TSMC's manufacturing footprint amidst geopolitical tensions between the US and China over Taiwan, where TSMC is headquartered. Despite opposition from President-Elect Donald Trump, who criticizes foreign companies' reliance on US government funds, the agreement is set to significantly enhance domestic chip production capabilities.