TSMC receives $11.6 billion to build another fab in the US

Taiwan’s TSMC, the world’s largest chipmaker, has received $6.6 billion in grants and another $5 billion in loans to build another fab in the United States. This was reported by Bloomberg.

With this, the company will start building a third chip manufacturing plant in Arizona as part of US President Joe Biden’s efforts to increase domestic production of critical technologies.

The two fabs, which are already under construction, will be launched in 2025 and 2028. The third fab will focus on next-generation 2-nanometer chip production and will be operational by the end of the decade.

“For the first time ever, we will be making at scale the most advanced semiconductor chips on the planet here in the United States of America, by the way, with American workers,” said US Secretary of Commerce Gina Raimondo.

Raimondo also said that manufacturing chips using 2-nanometer technology is critical for the creation and development of new technologies, including artificial intelligence, as well as for the military.

In total, TSMC has received more than $65 billion in investments to build three fabs. The company manufactures chips for NVIDIA, Qualcomm, Apple, AMD, Intel, and others.

As a reminder, the company recently suspended chip production at its Taiwan fab due to the earthquake. Later, it was also reported that this would have an impact on TSMC’s investments, but not on deliveries.