TSMC's U.S. plant will receive U.S. government subsidies

According to the DigiTimes report, according to sources at semiconductor equipment suppliers, TSMC and GF’s U.S. factories will receive substantial U.S. government subsidies to cover factory operating costs.

With ample government subsidies and tax incentives and long-term order commitments from customers, TSMC and GlobalFoundries will be able to generate substantial profits from their new U.S. factories, the sources said.

TSMC’s Arizona wafer plant held the first batch of machines and equipment arrival ceremony in early December. It is planned that the first phase will be launched in 2024 and will enter the 4nm chip production stage. The second phase plans to start producing 3nm processes in 2026. The total budget climbed to $40 billion.

Doris Hsu, chairman of GF, has said that with the incentives of the US federal and state governments, GF will be able to reduce operating costs, strengthen its financial structure and generate appropriate profits.

It is reported that the Biden administration is implementing the largest federal spending plan in decades to support American manufacturing. Previously, the Biden administration passed a $437 billion climate plan and a $52.7 billion semiconductor subsidy plan in 2021.