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TSMC is poised to receive a federal incentive exceeding $5 billion for its site in Arizona, according to a Bloomberg report that cites sources familiar with the matter. The U.S. government is not yet ready to announce the incentive because it has to be finalized with the world's largest contract maker of chips, but the sum looks very significant.
It is unclear whether TSMC—which produces chips for AMD, Apple, Intel, Nvidia, and Qualcomm—will receive $5 billion in grants or whether the sum includes grants, loans, and/or loan guarantees. Also, it is unclear whether it will use loans and loan guarantees to build and expand its site near Phoenix, Arizona, or will rather invest its own money.
If the information about $5 billion incentives for TSMC is accurate, then it is highly likely that the report about Intel's award package of around $10 billion is probably also accurate. Also consider the fact that Intel's projects in the U.S. are far more ambitious and costly than TSMC's. For example, Intel is building a brand-new site in Ohio, which is set to cost over $100 billion.
TSMC's project in Arizona involves an investment of $40 billion to construct two semiconductor fabrication facilities. For the world's No. 1 foundry, this is a way to diversify its geographical footprint and remain adaptable to the trend of onshoring semiconductor manufacturing. However, TSMC's Arizona project has faced multiple setbacks.
www.tomshardware.com
It is unclear whether TSMC—which produces chips for AMD, Apple, Intel, Nvidia, and Qualcomm—will receive $5 billion in grants or whether the sum includes grants, loans, and/or loan guarantees. Also, it is unclear whether it will use loans and loan guarantees to build and expand its site near Phoenix, Arizona, or will rather invest its own money.
If the information about $5 billion incentives for TSMC is accurate, then it is highly likely that the report about Intel's award package of around $10 billion is probably also accurate. Also consider the fact that Intel's projects in the U.S. are far more ambitious and costly than TSMC's. For example, Intel is building a brand-new site in Ohio, which is set to cost over $100 billion.
TSMC's project in Arizona involves an investment of $40 billion to construct two semiconductor fabrication facilities. For the world's No. 1 foundry, this is a way to diversify its geographical footprint and remain adaptable to the trend of onshoring semiconductor manufacturing. However, TSMC's Arizona project has faced multiple setbacks.
TSMC will receive $5 billion incentive from U.S. for Arizona fab: Report
That's a lot of money!
www.tomshardware.com
