November 16 news: The U.S. Department of Commerce announced on November 15 that it has finalized a $6.6 billion government subsidy for TSMC’s subsidiary in Phoenix, Arizona, to support semiconductor chip production.
Reuters reported this as the largest subsidy provided by the U.S. government to a chip company since the implementation of the CHIPS Act.
In April, TSMC agreed to increase its investment in Arizona from $25 billion to $65 billion and plans to build a third wafer fab in the state by 2030.
TSMC’s second Arizona plant will produce the world’s most advanced 2-nanometer technology. Production is expected to begin in 2028, using cutting-edge chip manufacturing technology called “A16.”
This subsidy package also includes up to $5 billion in low-cost government loans. Under the agreement, TSMC will receive cash support upon reaching project milestones, with the Department of Commerce expected to disburse at least $1 billion by year-end.
As part of the deal, TSMC has agreed to suspend stock buybacks for the next five years and share any excess profits with the U.S. government.
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