US awards TSMC $6.6b subsidy for Arizona chip production

The US Commerce Department announced a $6.6 billion subsidy for Taiwan Semiconductor Manufacturing Co’s (TSMC) US unit in Phoenix, Arizona, along with up to $5 billion in low-cost government loans, Reuters reported on Monday.

TSMC will expand its investment to $65 billion and add a third fab by 2030, producing advanced two nanometer technology.

This investment is the largest foreign direct investment in a new US project. TSMC aims to support US tech firms and create jobs through its Arizona fabs.

The company also plans to achieve a 90 per cent water recycling rate in its Arizona factories.

The US Commerce Department also announced grants and loans for Intel and is expected to award Samsung Electronics soon.