The United States will award Taiwanese chip giant TSMC up to $6.6 billion in direct funding to help build several plants on US soil, officials said Friday, finalizing the deal before a new administration enters the White House.
“Today’s final agreement with TSMC â- the world’s leading manufacturer of advanced semiconductors â- will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona,” said President Joe Biden in a statement.
The Biden administration’s announcement comes shortly before President-elect Donald Trump takes office. Trump has recently criticized the CHIPS Act, a major law passed during Biden’s tenure aimed at strengthening the US semiconductor industry.
While the US government has unveiled over $36 billion in grants through this act, including the award to TSMC, much of the funds remain in the due diligence phase and have not been disbursed.
But once a deal is finalized, funds can start flowing to companies that have hit certain milestones.