Apple Silicon supplier TSMC wins $6.6 billion U.S. subsidy for Arizona chip production

Apple Silicon supplier TSMC has been awarded a $6.6 billion U.S. subsidy and up to $5 billion in low-cost government loans for Arizona chip production.
David Shepardson and Stephanie Kelly:
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The U.S. Commerce Department said on Monday it would award Taiwan Semiconductor Manufacturing Co’s U.S. unit a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona and up to $5 billion in low-cost government loans.
TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030, Commerce said in announcing the preliminary award. The Taiwanese company will produce the world’s most advanced 2 nanometer technology at its second Arizona fab expected to begin production in 2028, the department said.
TSMC, the world’s largest contract chipmaker and a major supplier to Apple and Nvidia, had previously announced plans to invest $40 billion in Arizona. TSMC expects to begin high-volume production in its first U.S. fab there by the first half of 2025, Commerce said.
Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies. Lawmakers also approved $75 billion in government loan authority.
TSMC Arizona has also committed to support the development of advanced packaging capabilities through partners in the U.S. to allow customers to purchase advanced chips that are made entirely on U.S. soil, the department said, adding 70% of TSMC customers were U.S. companies.
At full capacity, TSMC’s three fabs in Arizona will manufacture tens of millions of leading-edge chips in 5G/6G smartphones, autonomous vehicles, and AI data center servers, the department said.

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MacDailyNews Take: We imagine a cartoon where aliens are viewing Earth from their ship’s bridge and laughing, “They put all of their advanced chip-making on a tiny island atop a major fault line under threat from a huge communist – ‘remember when we consigned that wretched, failed system to history’s dustbin eons ago?’ – authoritarian state that thinks it owns it! Ha, ha, ha, ha, ha!”
Whatever it takes to bring some real diversification to advanced chip-making for the U.S. and the world.
See also:
• U.S. Senate considers $30 billion in funding to boost domestic chipmaking – March 5, 2021
• Apple supplier TSMC to build multibillion-dollar chip plant in Arizona with Trump admin backing – May 14, 2020
• TSMC expands U.S. manufacturing with $12 billion chip fabrication plant – May 17, 2020
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