The Biden administration unveiled plans to allocate up to $6.6 billion in federal grants to the Taiwan Semiconductor Manufacturing Company (TSM). This comes as TSM pledges a $25 billion expansion in Arizona, which will see the establishment of a third fabrication plant in the state.
This deal marks the second significant announcement of US chipmaking grants in the past three weeks and is a key part of President Joe Biden’s push to rejuvenate advanced semiconductor manufacturing in the country.
The grants will support the ongoing construction of two manufacturing plants in the Phoenix area by TSMC. Additionally, the company revealed plans to construct a third facility in the same region in the coming years.
The objective is for all three plants to produce TSMC’s most cutting-edge chips. Some of these facilities even aim to utilize an upcoming 2 nanometer fabrication process to manufacture even more advanced chips than those currently available.
The latest developments on Monday underscore Arizona’s pivotal role in the initiative to revive semiconductor manufacturing in the United States.
President Biden has made several visits to the state in recent years, with a notable stop last month to announce grants for Intel, which is also investing in Arizona.
