US gives TSMC a ₹49,490 crore subsidy to expand its semiconductor business

To support the development of sophisticated semiconductors in Phoenix, Arizona, TSMC's US business has received a significant subsidy from the US government of ₹49,490 crore. Up to ₹37,730 crore in low-interest government loans are part of this funding. By 2030, TSMC intends to build a third fabrication facility in Arizona and raise its initial investment from 3.10 lakh crore rupees to 5.06 lakh crore rupees.

TSMC "will produce the world's most advanced two nanometer technology at its second Arizona fab expected to begin production in 2028," the US Commerce Department said. "These are the chips that underpin all artificial intelligence, and they are necessary components for the technologies that we need to underpin our economy, but frankly, a 21st century military and national security apparatus," said Commerce Secretary Gina Raimondo.

TSMC's first US chip factory is expected to begin high-volume production by early 2025. TSMC Arizona has committed to developing advanced packaging capabilities through US partners. This will enable customers to purchase advanced chips manufactured entirely within the country. TSMC CEO C.C. Wei stated that the company aims to boost US tech firms' innovation by increasing capacity for cutting-edge technology via TSMC Arizona. The Commerce Department anticipates that TSMC's projects will generate 6,000 manufacturing jobs and 20,000 construction jobs. Additionally, 14 TSMC suppliers are planning to build or expand plants in the US.

Once operating at full capacity, TSMC's three Arizona facilities will produce millions of leading-edge chips for 5G/6G smartphones, autonomous vehicles, and AI data center servers.