2-nanometer production

USA pumps billions into new TSMC chip factory

The Taiwanese semiconductor manufacturer TSMC is investing significantly more in its new plant in the US state of Arizona and is receiving billions in government funding. The US Department of Commerce gave the green light on Monday for aid amounting to 6.6 billion dollars (around six billion euros). This is in addition to up to five billion dollars in favorable government loans. TSMC has also agreed to significantly increase its investment in the plant to 65 billion dollars.

A third factory hall is also to be built in Arizona by 2030. At 65 billion dollars, this is the largest single investment ever made by a company in a completely new plant in the USA.

2-nanometer production line planned
TSMC will manufacture semiconductors with a node size of two nanometers in one of the halls. "These are the chips that are the basis for artificial intelligence, and these are the chips that are needed for the technologies that are the basis for our economy and our security apparatus in the 21st century," explained Secretary of Commerce Gina Raimondo. TSMC is the world's leading contract manufacturer for semiconductors and an important supplier for Apple and Nvidia.

TSMC will also work with partners to ensure that the semiconductors are also processed in the USA. Many chips are currently processed into components in Asia. The aim is for customers to be able to buy modern semiconductors that are produced entirely in the USA, the ministry explained.

The US Congress had given the green light for the Chips Act in 2022, which is linked to 52.7 billion dollars in government support for the industry. A further 75 billion dollars in loans will also be provided.