US Biden Administration Confirms Up to 9.2 Trillion Won Subsidy for TSMC

The U.S. government under Joe Biden has finalized semiconductor support funding for Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), at $6.6 billion (approximately 9.2 trillion KRW).

On the 15th (local time), the White House issued a statement announcing, "The Department of Commerce has awarded up to $6.6 billion in direct funding to TSMC Arizona, a subsidiary of TSMC, under the CHIPS Act grant program for commercial manufacturing facilities."

In addition to direct funding, the White House stated that TSMC Arizona will also receive low-interest loans of up to $5 billion, part of the $75 billion loan authority provided under the CHIPS Act.

The White House explained that this direct funding follows the preliminary memorandum of transaction (PMT) announced on April 8 and the completion of due diligence by the Department of Commerce.

It added that this support backs TSMC's plan to invest more than $65 billion to build three advanced factories in Phoenix, Arizona.

In April, TSMC announced plans to expand its investment in the U.S. to $65 billion and to construct a third semiconductor production plant in Arizona utilizing 2-nanometer process technology by 2030.

Meanwhile, this announcement came just over two months before the inauguration of President-elect Trump, scheduled for January 20 next year. President-elect Trump has criticized the Biden administration's CHIPS Act. Due to growing uncertainty regarding the next U.S. government’s semiconductor policies, TSMC reportedly canceled the completion ceremony for its U.S. factory originally planned for early next month.