In a landmark move aimed at bolstering domestic semiconductor manufacturing, the Biden administration announced on Monday a preliminary agreement to provide up to $6.6 billion in federal funding to TSMC's Arizona subsidiary. This funding, allocated under the U.S. CHIPS and Science Act, marks a significant step in supporting TSMC's substantial investment of over $65 billion in constructing three state-of-the-art fabrication plants in Phoenix, Arizona.
According to the terms of the nonbinding agreement, TSMC's Arizona subsidiary will receive the federal grants to facilitate the expansion of its manufacturing capabilities in the region. Additionally, the company is eligible for approximately $5 billion in proposed loans under the CHIPS Act, further bolstering its financial resources for the ambitious project.
