Business Today: Semiconductor Giant TSMC Receives Massive Financial Support from the US Government
TSMC, the global leader in semiconductor manufacturing and a major supplier to technology giants such as Apple and Nvidia, has received an unprecedented $6.6 billion financial support from the United States government. This funding aims to assist TSMC in its chip production endeavors, particularly through its plants in Arizona that are expected to cater to major clients like Apple and Advanced Micro Devices.
US Government Financial Support
Under the CHIPS and Science Act, TSMC is eligible to borrow an additional $5 billion, bringing the total financial assistance to an impressive $11.6 billion. This funding will primarily aid TSMC in constructing three chip manufacturing facilities in Arizona, bolstering the semiconductor industry in the United States.
Gina Raimondo, the US Secretary of Commerce, acknowledged the significance of this financial support, emphasizing that the partnership with TSMC will bring the most advanced semiconductor industry to the United States. She commended TSMC’s decision to invest in production in Arizona, deeming it a victory for the US government in promoting the semiconductor industry.
The CHIPS and Science Act
The CHIPS and Science Act was passed by the US Congress in August 2022, providing a total subsidy of nearly $53 billion to strengthen the domestic semiconductor industry, boost the economy, and enhance competitiveness with other nations.
Apart from TSMC, other companies including GlobalFoundries, Microchip, BAE Systems, and Intel have also benefited from financial assistance under this legislation.
Business Today applauds the US government’s support for the semiconductor industry, recognizing the vital role it plays in driving technological advancements and economic growth. The collaboration between TSMC and the US government sets an exemplary precedent for fostering innovation and maintaining global leadership in semiconductor manufacturing.
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