Apple Silicon supplier TSMC wins $6.6 billion U.S. subsidy for Arizona chip production – MacDailyNews
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Apple Silicon supplier TSMC has been awarded a $6.6 billion U.S. subsidy and up to $5 billion in low-cost government loans for Arizona chip production.
David Shepardson and Stephanie Kelly:
The U.S. Commerce Department said on Monday it would award Taiwan Semiconductor Manufacturing Co’s U.S. unit a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona and up to $5 billion in low-cost government loans.
TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030, Commerce said in announcing the preliminary award. The Taiwanese company will produce the world’s most advanced 2 nanometer technology at its second Arizona fab expected to begin production in 2028, the department said.
TSMC, the world’s largest contract chipmaker and a major supplier to Apple and Nvidia, had previously announced plans to invest $40 billion in Arizona. TSMC expects to begin high-volume production in its first U.S. fab there by the first half of 2025, Commerce said.
Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies. Lawmakers also approved $75 billion in government loan authority.
TSMC Arizona has also committed to support the development of advanced packaging capabilities through partners in the U.S. to allow customers to purchase advanced chips that are made entirely on U.S. soil, the department said, adding 70% of TSMC customers were U.S. companies.
At full capacity, TSMC’s three fabs in Arizona will manufacture tens of millions of leading-edge chips in 5G/6G smartphones, autonomous vehicles, and AI data center servers, the department said.
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MacDailyNews Take: We imagine a cartoon where aliens are viewing Earth from their ship’s bridge and laughing, “They put all of their advanced chip-making on a tiny island atop a major fault line under threat from a huge communist – ‘remember when we consigned that wretched, failed system to history’s dustbin eons ago?’ – authoritarian state that thinks it owns it! Ha, ha, ha, ha, ha!”
Whatever it takes to bring some real diversification to advanced chip-making for the U.S. and the world.
See also:
• U.S. Senate considers $30 billion in funding to boost domestic chipmaking – March 5, 2021
• Apple supplier TSMC to build multibillion-dollar chip plant in Arizona with Trump admin backing – May 14, 2020
• TSMC expands U.S. manufacturing with $12 billion chip fabrication plant – May 17, 2020
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Excited to see chip production come to USA but not $6.6 billion subsidy. Besides $34T in debt, government shouldn’t be bankrolling private industry. This is socialism on the march. Great to have chips made in America but soon no one will be able to afford to buy one because of hyperinflation from government deficit spending. Today, the dollar has 83% less buying power than it did in 2020.
This year we will pay more $ just on the interest on the debt than any budget item including the military and Medicare.
This is exactly one of the few strategic investments that America SHOULD be making. If you haven’t noticed the US is radically socialist already and the change isn’t going to come about by saving a few billion here or there. An economic collapse will occur in our lifetimes.
“US is radically socialist” is NOT TRUE. Only seems that way because of the most socialist presidential administration in history and the compliant/agreeable media chronicling and cheerleading it ALL.
In survey after survey the numbers do not support socialism in America, that has not changed throughout history. Besides, 75 million voted for Trump in 2016 and that number could climb this year…
Again, as a conservative, you’re in the dark…besmirching “ONLY” the current admin as socialist. Do you know that the progressive tax system, amongst many/many other policies, was deemed the way for socialist architects?
Keynesianism, the foundation of our system since the 20’s, is all about “equalization” of financial differences. Keynes was mental kin of the Marxists. We’ve had the progressive tax system for decades and it NOT limited to the current dizzy Roomba in Office and R’s have embraced it like their own.
It’s a factor related to why our currency, since 1913-14, has devalued over 90% (allows spending). The attempt to make it “more fair,” under the guise of “equity,” ALWAYS makes it more unfair for someone else. Student loan forgiveness, for instance…hurts the lower econ strata the most. Min wage = same.
Socialism always ends poorly as it kills healthy incentive AND, other people’s $$ always comes to an end. Wake up GeoB…you and MANY are likely a member of the lesser Socialist Party and you have no idea.
GeoB, do you know Trump added as much, or more, to the dept as JRB? The ultimate “winner” of this lousy spend-contest will be Joe because of his idiotic border influx, but Trump is no pure Capitalist…if you deem his spending as irresponsible and spreading the wealth–like a socialist.
@Frank Robinson the last thing I want to be accused of is being WOKE UP!
But I do agree with the majority of your post and yes, conservatives are guilty as hell.
That said, the Dumbo Party is ALL wrong on taxation they wield it like a weapon to slay Big Business, Big Energy, or Big Wealthy at least in their own minds. But they are DOUBLE WRONG when they run astronomical deficits adding fuel to inflation and mounting debt.
Student loan forgiveness is a brazen attempt to BUY VOTES with our money in an election season after W.H. looked at the drop in support among younger voters.
Trump is far from perfect, but NO ONE can deny you were NOT better off during his presidency as a result of his policies. No way he can be worse than the Biden Buffoon…
If you mean the ‘Elephant’ party with the ‘Dumbo’ remark you realize you’re referring to Republicans right?
@Marvin Nakajima wrong analogy! We’re talking DUMB Democrats not a cutesy Disney character. Keep up, please…
I’d think the capitalized “dumbo” would bring the Disney character to mind than what you intended for most people.:p
Petty cash
Petty cash is how you build a $34T debt you can’t repay.
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