US finalizes $6.6 billion chips award for TSMC ahead of Trump return

Published On Nov 15, 2024, 5:03 AM

The U.S. government has finalized a $6.6 billion subsidy for Taiwan Semiconductor Manufacturing Co. (TSMC) to support semiconductor production in Arizona. This deal is part of a broader initiative under the Chips and Science Act to boost domestic semiconductor manufacturing, particularly critical advanced technologies. TSMC plans to invest $65 billion overall and will produce its most advanced chips at the facility, which includes a commitment to forgo stock buybacks for five years and share excess profits with the U.S. government. Additionally, the U.S. is taking measures to prevent TSMC from selling advanced chips to China.

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This investment in TSMC reflects strong governmental support for semiconductor manufacturing in the U.S., which is a positive trend for the industry, especially given the global semiconductor shortage and geopolitical tensions surrounding technology and supply chains.

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