Apple Chipmaker TSMC to Receive $6.6 Billion Grant to Step Up Production in the U.S.
The United States Commerce Department today announced a significant financial commitment to Apple chip supplier TSMC to make more chips in the U.S. (via Bloomberg).
The White House shared a statement explaining that the U.S. Commerce Department will allocate a $6.6 billion subsidy to TSMC for the advancement of semiconductor production in Phoenix, Arizona. TSMC will also receive $5 billion in loans and be eligible to claim an investment tax credit of up to 25% of capital expenditures. The move is part of a larger initiative under the CHIPS and Science Act, which aims to rejuvenate the United States' semiconductor manufacturing capabilities.
TSMC has already committed to an escalated investment of $25 billion, elevating its total investment to $65 billion. This is the largest foreign direct investment in a completely new project in U.S. history.
The chipmaker also announced plans to construct a third fabrication plant in Arizona by 2030. The first TSMC plant in Arizona will start producing 4nm chips next year. The second plant, which was originally designed to make 3nm chips, will also make 2nm ones by 2028. The third plant will produce 2nm chips with capacity to make even more advanced semiconductors in the future.
Apple's most advanced chips are currently made in Taiwan using TSMC's 3nm process, so the ability to make these chips and even more powerful ones in the future in the United States could represent a significant future shift in the company's supply chain.
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