The Biden administration said Monday it plans to send up to $6.6 billion in federal grants to the Taiwan Semiconductor Manufacturing Company (TSM) as the chipmaking giant promises a $25 billion Arizona expansion that will bring a third TSMC fabrication plant to that state.
The deal, the second major US chipmaking grant announcement of the last three weeks, is part of President Joe Biden’s effort to restart advanced semiconductor manufacturing in the US.
In March Biden said the US would provide up to $8.5 billion in grants in the years ahead to Intel (INTC) to support a range of new projects in Arizona, Ohio, New Mexico, and Oregon.
The money for both companies is coming from 2022’s CHIPs and Science law, a signature accomplishment of Biden’s current term.
TSMC will use the grants to fund the continued construction of two manufacturing plants already being built in the Phoenix area. The company also announced Monday it would build a third facility there in the years ahead.