The US government has finalized its agreement with Taiwan Semiconductor Manufacturing Company (TSMC), awarding the company $6.6 billion in incentives under the CHIPS Act. TSMC, a key player in semiconductor production, will receive the first tranche of $1 billion by the end of this year, with plans for a $65 billion factory complex in Arizona. This investment aims to revitalize US tech manufacturing and create thousands of jobs, with the first facility expected to open next year.
The deal highlights TSMC’s commitment to ramping up US production of advanced semiconductors, crucial for national security and economic growth. TSMC is also receiving a $5 billion loan to support the project’s financing. While the company’s relationship with Huawei raised concerns earlier this year, TSMC has taken steps to ensure compliance with US sanctions by halting shipments to Huawei and discontinuing production for other Chinese clients.
As other tech giants like Intel and Samsung await their share of the CHIPS Act funding, business groups are urging the government to finalize these agreements quickly, fearing potential delays as the administration changes. However, with bipartisan backing, the initiative is expected to continue fueling domestic tech production.
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