The U.S. Joe Biden administration announced on the 15th (local time) that it will pay $6.6 billion (approximately KRW 9.2 trillion) in semiconductor support under the Semiconductor Support Act (CHIPS Act) to Taiwan’s TSMC, the world’s largest foundry (semiconductor consignment production) manufacturer. time) confirmed. Bloomberg News commented on the announcement, which came about two months before President-elect Donald Trump’s inauguration scheduled for January 20th next year, as “the first case in which subsidy payments under the Semiconductor Act have reached a legally binding stage.”
The U.S. Department of Commerce announced today that it has confirmed the payment of up to $6.6 billion in subsidies to TSMC Arizona, a subsidiary of TSMC, under the Semiconductor Act. The Semiconductor Act is a law that supports a total of $52.7 billion (about 69.45 trillion won) over five years for semiconductor research and development (R&D) and manufacturing to encourage semiconductor production in the United States. A senior official from the Department of Commerce met with reporters that day and explained, “We expect to pay at least $1 billion to TSMC by the end of this year.” The White House also plans to provide low-interest loans of up to $5 billion to TSMC Arizona.
President Biden emphasized in a statement that day, “This is the most important milestone in implementing the semiconductor law agreed upon by both parties.” Secretary of Commerce Gina Lermondo also said on NBC, “TSMC is making the most sophisticated semiconductors in the United States,” and added, “The Semiconductor Act is essential to attracting TSMC and other semiconductor investments to the United States.” Previously, in April, TSMC announced plans to expand its investment in the U.S. to $65 billion and build a third fab (semiconductor production plant) that will use the 2-nano process in Arizona by 2030. TSMC was already building two fabs in Phoenix.
Reuters reported that the Department of Commerce allocated a total budget of $36 billion, including $6.4 billion to Samsung Electronics’ foundry plant in Texas, $8.5 billion to Intel, and $6.1 billion to Micron. He continued, “We are working to complete this before President Biden leaves office on January 20th next year.” However, unlike TSMC, whose payment contract has been finalized, Samsung and Intel cannot 100% guarantee whether they will be able to receive all of this money due to the launch of the second Trump administration.
President-elect Trump has strongly criticized the Semiconductor Act during his presidential campaign. Addressing TSMC, he said, “The semiconductor company stole 95% of our business and is now in Taiwan.” As uncertainty about the incoming administration’s related policies increases, TSMC is reported to have canceled the completion ceremony for its first plant (P1) in Phoenix, USA, scheduled for early next month.
Reporter Hong Jeong-su [email protected]
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What are President Biden’s key points regarding the presidential election outcome and power transition?
In a recent statement on November 7, President Joe Biden addressed the nation concerning the outcome of the presidential election in which former President Donald Trump is a candidate. Biden emphasized the importance of respecting the people’s choice and confirmed that power will be transitioned peacefully on January 20, 2024.
In another significant announcement, the Biden administration detailed plans to allocate $6.6 billion in semiconductor support to Taiwan’s TSMC under the CHIPS Act, a major initiative aimed at boosting semiconductor manufacturing in the U.S. This marks a critical step in the implementation of the Semiconductor Act, which aims to invest a total of $52.7 billion over five years. The payment to TSMC is expected to strengthen U.S. semiconductor production and stimulate further investment in the industry.
The Department of Commerce confirmed the funding arrangement for TSMC’s Arizona plant and noted that additional support, including low-interest loans, will be provided. TSMC’s commitment to expanding its operations in the U.S. includes plans for substantial investments and the development of new production facilities.
However, uncertainty looms as Trump has been critical of the Semiconductor Act during his campaign, raising concerns about the future of such funding with a potential Trump administration. This uncertainty has already impacted TSMC, prompting the company to cancel the completion ceremony for its first plant in Phoenix, scheduled for next month.
the developments signal both progress in semiconductor policy and the unpredictable nature of U.S. politics as the country heads toward a potentially contentious presidential transition.