The USA has finalized the decision to provide $6.6 billion in subsidies to the TSMC factory before the change of administration.
November 15, 2024 9:05 PM GMT+9
On the 15th, the US Department of Commerce announced the final decision to provide $6.6 billion in subsidies to the semiconductor factory of Taiwan Semiconductor Manufacturing Company (TSMC) in Phoenix, Arizona.
The subsidy is based on the "CHIPS Act" enacted in 2022 with the aim of promoting the domestic semiconductor industry.
Mr. Trump, who will assume the presidency next January, claims that Taiwan is stealing the USA's semiconductor business and criticizes the same law.
TSMC, the world's largest semiconductor foundry, agreed in April to increase its investment in the Arizona factory to $25 billion, totaling $65 billion, and to expand to a third factory by 2030.
TSMC plans to manufacture semiconductors with the world's most advanced 2-nanometer technology at the second factory in Arizona scheduled to start operations in 2028. They also agreed to use cutting-edge semiconductor manufacturing technology called "A16" in the Arizona plant.
Initially, there were many negative opinions that TSMC would manufacture old-generation semiconductors in the usa, but in reality, Lemondo, the U.S. Secretary of Commerce, stated that they are actually manufacturing cutting-edge semiconductors in the usa.
The subsidy is based on the "CHIPS Act" enacted in 2022 with the aim of promoting the domestic semiconductor industry.
Mr. Trump, who will assume the presidency next January, claims that Taiwan is stealing the USA's semiconductor business and criticizes the same law.
TSMC, the world's largest semiconductor foundry, agreed in April to increase its investment in the Arizona factory to $25 billion, totaling $65 billion, and to expand to a third factory by 2030.
TSMC plans to manufacture semiconductors with the world's most advanced 2-nanometer technology at the second factory in Arizona scheduled to start operations in 2028. They also agreed to use cutting-edge semiconductor manufacturing technology called "A16" in the Arizona plant.
Initially, there were many negative opinions that TSMC would manufacture old-generation semiconductors in the usa, but in reality, Lemondo, the U.S. Secretary of Commerce, stated that they are actually manufacturing cutting-edge semiconductors in the usa.
The assistance to TSMC includes up to $5 billion in low-interest government loans. TSMC will receive subsidies for each milestone achieved in the project. According to government officials, the Department of Commerce plans to pay TSMC at least $1 billion by the end of the year.
Except for certain exceptions, TSMC has also agreed to refrain from share buybacks for five years.
On the 9th, Reuters reported that the U.S. Department of Commerce ordered TSMC to stop shipping advanced semiconductors used in artificial intelligence (AI) to chinese customers starting on the 11th.
Although Secretary Lemondo did not confirm this order, he stated that the usa needs to play offense and defense against china. He said, 'Investing in TSMC's expansion in the usa is an attack, while preventing any company from selling cutting-edge U.S. technology to china and violating U.S. export restrictions is defense.'
Except for certain exceptions, TSMC has also agreed to refrain from share buybacks for five years.
On the 9th, Reuters reported that the U.S. Department of Commerce ordered TSMC to stop shipping advanced semiconductors used in artificial intelligence (AI) to chinese customers starting on the 11th.
Although Secretary Lemondo did not confirm this order, he stated that the usa needs to play offense and defense against china. He said, 'Investing in TSMC's expansion in the usa is an attack, while preventing any company from selling cutting-edge U.S. technology to china and violating U.S. export restrictions is defense.'
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