Advertisement
US-China tech war: TSMC strikes US$11.6 billion deal to make ‘most advanced semiconductor chips’ in Arizona
- Taiwanese firm set to get US$6.6 billion in grants and as much as US$5 billion in loans to help build factories as Washington vies for chip prominence
- With new investments like those from TSMC Arizona, US says it is on track to make roughly 20 per cent of world’s leading-edge semiconductors by 2030
Reading Time:2 minutes
Why you can trust SCMP
5
Ji Siqiin Washington
Amid its continuing tech war with China, the United States on Monday announced a US$6.6 billion grant to Taiwan Semiconductor Manufacturing Company for the chip-making giant to build a third plant in the country for “the world’s most advanced semiconductors”.
In addition, a US$5 billion loan from Washington will be made available to the Taiwanese firm, which will invest more than US$65 billion to construct three semiconductor fabrication plants, or fabs, in the state of Arizona, according to the US Department of Commerce.
The third plant will be built before the end of the decade and produce 2-nanometer or more advanced chips, it added.
Advertisement
“TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day,” said US President Joe Biden in a statement.
The development underscored the Biden administration’s push for the Chips and Science Act, signed into law in 2022 and setting aside US$39 billion in direct grants – plus loans and guarantees worth US$75 billion – to lure semiconductor companies to build manufacturing facilities in America.
Advertisement
The US currently produces less than 10 per cent of the world’s chips and none of the most advanced ones.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x