The United States Department of Commerce has announced a summary of providing a $6.6 billion subsidy to TSMC under the CHIPS Act to support the establishment of a chip manufacturing plant in the country. This funding is part of TSMC’s third chip manufacturing plant project in Phoenix, Arizona, with a total investment value of $65 billion and production expected to begin in 2030 using 2-nanometer advanced technology.
In addition to the $6.6 billion subsidy, the CHIPS office will provide low-interest credit of up to $5 billion to TSMC for further investment in tangible assets. President Joe Biden mentioned that the US used to account for 40% of global chip production, but now only around 10%, lacking in advanced chip technology. The CHIPS Act aims to support technological advancement and create over 125,000 jobs in the country.
Source: US Department of Commerce and The White House
TLDR: The US government announced a $6.6 billion subsidy to TSMC for a chip manufacturing plant project, part of efforts to boost technological advancement and job creation in the country.
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