by David Shepardson and Stephanie Kelly
WASHINGTON (Reuters) – The US Department of Commerce announced on Monday that it had awarded the US subsidiary of Taiwan Semiconductor Manufacturing Co (TSMC) a subsidy of $6.6 billion (6.1 billion euros) for advanced semiconductor production in Phoenix, Arizona.
This package also includes some $5 billion in the form of low-interest government loans.
TSMC has agreed to increase its investment in the United States, initially planned at $25 billion, to $65 billion and to set up a third factory in Arizona by 2030, the Commerce Department said .
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The Taiwanese company will produce the world’s most advanced 2-nanometer chip at its second factory in Arizona, with production expected to begin in 2028, he added.
TSMC plans to begin high-volume production at its first U.S. factory by the first half of 2025.
TSMC Arizona is also committed to supporting the development of advanced packaging lines through partnerships in the United States, to enable customers to purchase chips manufactured entirely on American soil.
The Commerce Department expects the creation of 6,000 direct jobs in the manufacturing sector and 20,000 jobs in the construction sector. It said 14 direct suppliers to TSMC planned to build or expand factories in the United States.
Through its Arizona factories, TSMC will work with key customers like Apple, Nvidia, Advanced Micro Devices and Qualcomm “meeting their demand for peak capacity, reducing supply chain issues and enabling them to be competitive in the ongoing era of digital transformation,” the Commerce Department emphasized.
(Reporting David Shepardson; With contribution from Alexandra Alper; French version Alban Kacher, edited by Sophie Louet)
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