The U.S. Government Grants Taiwanese Semiconductor Manufacturer TSMC Up to 6.6 Billion Dollars for the Construction of a Factory Complex in Phoenix. TSMC Plans to Invest Over 65 Billion Dollars into the Project and to Add a Third Chip Factory to the Complex Started in 2021. One of the Factories is Expected to Produce Cutting-Edge 2-Nanometer Chips.

"It poses a national security issue that we do not produce any of the world's most advanced chips in the United States," said Commerce Secretary Gina Raimondo. The funding is provided in stages once certain agreed milestones have been reached and is subject to due diligence review by the Commerce Department as part of the CHIPS Act of 2022.

This law is part of a bipartisan initiative by the Biden administration to relocate chip manufacturing back to the USA. It includes $53 billion in grants, research funding, and other incentives to counteract the outsourcing of the chip industry abroad.

With projects like that of TSMC, the US government is on track to produce about 20% of the world's most advanced chips by 2030. TSMC, the world's largest contract manufacturer for semiconductors, is among the first companies to participate in the initiative, although it has been slowed down by a shortage of skilled labor.

In addition to financing from the US government, TSMC has access to state loans of up to 5 billion dollars for the project, as well as 50 million dollars for the promotion of workforce development. The project is expected to create more than 20,000 construction jobs and 6,000 permanent jobs and has already attracted over a dozen suppliers for TSMC.