The U.S. government will provide a total of $11.6 billion (approximately 15.7 trillion KRW) to Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), under the Chips Act. This includes a subsidy of $6.6 billion (approximately 8.9 trillion KRW).
According to major foreign media such as the Associated Press, on the 8th (local time), the U.S. Department of Commerce announced it would provide TSMC with a $6.6 billion subsidy for building a semiconductor factory. In addition to the subsidy, the Department of Commerce will also offer TSMC a low-interest loan worth $5 billion (approximately 6.8 trillion KRW).
Accordingly, TSMC is expanding its planned investment from the original $40 billion (54.2 trillion KRW) to $65 billion (approximately 88.1 trillion KRW) and is expected to build its third factory in Arizona by 2030. The Department of Commerce explained that the $65 billion investment is the largest foreign direct investment ever made in the United States.
Foreign media, citing sources, reported that subsidy support for South Korea's Samsung Electronics is also expected to be announced next week. The Chips Act is designed to encourage semiconductor companies to invest in facilities within the United States, specifying a total of $39 billion in semiconductor production subsidies and $13.2 billion in research and development (R&D) support over five years, totaling $52.7 billion in aid.
Earlier, on the 20th of last month, the U.S. government announced it would provide domestic semiconductor manufacturer Intel with a total of $19.5 billion in funding, including $8.5 billion in subsidies and $11 billion in loans.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
