The latest investment from the US government to the world’s top chipmaker will total $65 billion, causing TSMC shares to jump by 3.7% yesterday.
This comes after the US government pledged $8.5 billion to Intel for chip plants across four US states last month.
TSMC will begin making chipsets in Arizona from 2028 as US President Joe Biden aims to bring production to home soil.
The subsidies fall under the Chips Act, which was passed in 2022, largely in response to growing fears of a Chinese invasion of Taiwan – where 90% of cutting-edge chipsets are produced.
The US commerce secretary, Gina Raimondo said: “For the first time ever, we will be making at scale the most advanced semiconductor chips on the planet here in the United States of America. These are the chips that underpin all artificial intelligence.”
TSMC also has plans to produce chips in Japan and Germany.
Biden said in a statement released by the White House: “Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems.”
“America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to just over 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities.”
“I was determined to turn that around, and thanks to my CHIPS and Science Act – a key part of my Investing in America agenda – semiconductor manufacturing and jobs are making a comeback.”
The Biden administration is set to announce more than $6 billion in funding to Samsung to expand its chip output in Texas according to a Reuters report on Monday.
