The US Department of Commerce has announced that it will directly invest $6.6 billion (approximately 1 trillion yen) in TSMC based on the CHIPS Act. At the same time, it has also been revealed that a semiconductor factory adopting TSMC’s 1.6nm process rule will be built in the United States.
Biden-Harris Administration Announces CHIPS Incentives Award with TSMC Arizona to Secure U.S. Leadership in Advanced Semiconductor Technology | U.S. Department of Commerce
The CHIPS Act is a law aimed at supporting and promoting the semiconductor industry in the United States, and provides subsidies to companies operating in the United States. As President-elect Donald Trump has expressed his opposition to the CHIPS Act, there is a movement to hasten the contract before Trump takes office, and on November 7, 2024, “TSMC and GlobalFoundries announced that It was reported that an agreement had been reached.
Semiconductor manufacturers TSMC and GlobalFoundries reach agreement with the Department of Commerce regarding subsidies based on the CHIPS Act – GIGAZINE
Then, on November 15, 2024, the Department of Commerce announced that it had signed a $6.6 billion direct investment agreement with TSMC. TSMC also has the right to receive up to $5 billion (approximately 770 billion yen) in loans.
Furthermore, it has been revealed that TSMC will build a semiconductor factory in Phoenix, Arizona that uses the 1.6nm process rule semiconductor manufacturing technology “A16″. Construction of the factory will create more than 20,000 construction-related jobs and approximately 6,000 manufacturing-related jobs. President Joe Biden said, “This final agreement with TSMC will spur $65 billion in private investment to build three state-of-the-art facilities in Arizona and generate tens of thousands of thousands of dollars by 2030. It will create jobs for people.”
TSMC plans to start mass production using the 2nm process rule in 2025, and mass production using the 1.6nm process rule in the second half of 2026.
TSMC announces that mass production of 1.6nm generation semiconductor manufacturing process “A16” will begin in 2026 – GIGAZINE
by Li Jilin
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How do you believe the CHIPS Act will impact the future of semiconductor research and development in the United States, and what specific outcomes do you anticipate as a result?
Interviewee 1: Dr. Jane Smith, Professor of Technology Policy at a renowned university.
Interviewee 2: Samantha Wilson, CEO of a startup semiconductor company based in Phoenix, Arizona.
Section 1: Background and Significance of the CHIPS Act
Interviewer: Good morning everyone. Today’s discussion is about the recent U.S. government investments in TSMC and its implications for the semiconductor industry. To start off, could you please provide a brief overview of the CHIPS Act and its significance?
Dr. Smith: The Chips and Science Act, or CHIPS Act for short, is a landmark legislation signed into law by President Biden in 2021. Its main goal is to boost domestic semiconductor production and R&D in the United States by providing financial incentives and support to companies operating in this field. This is critical as the US has been heavily reliant on foreign chip manufacturers like TSMC and Samsung for the majority of its chip requirements. The CHIPS Act seeks to reverse this trend and promote innovation within the country.
Samantha: The CHIPS Act is incredibly important for the semiconductor industry in the United States because it recognizes the strategic importance of this sector. Chips are used in virtually every electronic device we use today, from smartphones to cars to medical equipment. Ensuring that the US has a strong and robust semiconductor supply chain is crucial for our economy and national security. The bill provides funding for research, development, and manufacturing initiatives that will help us become more self-sufficient in this area.
Interviewer: Excellent points. Let’s move on to the recent announcement by the Department of Commerce regarding TSMC. Can you please explain the details of the contract and its implications?
Section 2: U.S. Department of Commerce Investment in TSMC
Dr. Smith: Yes, the Commerce Department announced a $6.6 billion direct investment in TSMC’s Arizona plant which will use the most advanced manufacturing process, the 3nm technology. This is a significant step in bolstering domestic semiconductor production capabilities and reducing dependence on overseas supp
