The U.S. government concludes the $6.6 billion incentives from the CHIPS Act for TSMC.
TSMC will be the first company to receive the incentives from the Chips Act promised by the U.S. government.
Taiwan Semiconductor Manufacturing Co. (TMSC) has become the first company to benefit from the CHIPS Act funds, receiving the green light from the Biden administration to access part of the promised financing. The administration has approved a total of $6.6 billion in grants for TSMC, which are part of an agreement to increase semiconductor production in the United States. Additionally, the company will take a $5 billion loan from the government to support the expansion of its three-factory complex in Arizona, which has a total cost of $65 billion.
According to sources, TSMC expects to receive at least $1 billion before the end of the year, as it has met certain established requirements. Recently, a Canadian research firm revealed that Huawei was using TSMC chips for its artificial intelligence accelerators, which violates the sanctions imposed by the U.S. government. The Taiwanese company denied having any working relationship with Huawei and ceased shipping products to the customer that might be illegally transferring chips to Huawei. It also decided to halt the production of advanced AI chips for its Chinese customers in an effort to demonstrate to the U.S. government that it is not acting against its interests.
President Joe Biden emphasized the importance of this agreement, stating that it will generate a $65 billion private investment to build three state-of-the-art facilities in Arizona, resulting in the creation of tens of thousands of jobs by the end of this decade. The first of these facilities is scheduled to be fully operational by early next year.
On the other hand, companies like Intel and Samsung are still awaiting their respective grants. Business groups have urged the government to finalize CHIPS Act agreements before Biden completes his term. Although they are not concerned about the potential cancellation of this law by a new administration, which has bipartisan support, they seek to avoid the need to renegotiate with the government in the near future.
