Chip makers will build new factories and expand existing ones in North America.
The U.S. Government is ramping up efforts to strengthen the domestic chip and semiconductor industry. On Monday, President Joe Biden announced a preliminary agreement with Taiwan Semiconductor Manufacturing Company (TSMC) to provide $6.6 billion in direct funding under the Chips and Science Act to expand its Arizona facilities. The sum makes up roughly ten percent of TSMC’s total investment in Arizona: the company announced it will add $25 billion to reach a staggering sum of $65 billion. The chipmaker also agreed to build a third factory in the state where it aims to produce the most advanced semiconductors in the U.S.
Government Also Set to Support Samsung’s Facilities in Texas
In addition to TSMC, South Korean Samsung will also receive $6.6 billion, according to Reuters citing unnamed sources. As part of the agreement with the U.S. Government, the company will more than double its investment in the U.S., bringing it to over $44 billion. The money will reportedly go to four facilities in Texas, including a chipmaking plant announced in 2021 (we reported). The remaining three are planned to be an additional chip manufacturing facility, a research center, and a packaging plant. The sources added that the Department of Commerce will announce the investment next week.
U.S. President Joe Biden signed the U.S. Chips and Science Act into law in 2022, providing financial support for domestic semiconductor research, development, and production totaling $52.7 billion. In addition, the act was accompanied by lawmakers approving $75 billion in government loans.
Photo: iStock/gorodenkoff
