TSMC To Win $5B Grant For US Plant To Service Apple, Nvidia Chip Demand: Report
Taiwan Semiconductor Manufacturing Corp. (NYSE:TSM) is expected to win up to $5 billion in grants from the U.S. government for building a chip fabrication facility in Arizona.
Bloomberg reported on Friday, citing sources familiar with the matter, that the world’s largest contract chipmaker would soon be announcing the deal, although it wasn’t clear whether the award would come from the $52 billion CHIPS Act fund for boosting U.S. semiconductor manufacturing.
In May 2020, TSMC announced plans to invest $12 billion in a semiconductor manufacturing facility in Phoenix, Arizona, aiming to bolster its production capacity in the United States. Then in December the same year, plans for a second fab – again, in Phoenix – were announced, taking the total investment to $40 billion.
The company said at the time: “As one of TSMC’s advanced fabs, TSMC Arizona will play a vital role in the U.S. government’s goal to onshore semiconductor manufacturing and strengthen national economic competitiveness.”
Construction of the first fab began in April 2021 and volume production is expected to begin in the first half of 2025. The second fab is expected to be operational two or three years later.
The company already operates a U.S. fab in the State of Washington.
TSMC’s Main Customers Nearby
TSMC’s largest customer is Apple Inc. (NASDAQ:AAPL), which it calls “Customer A” on its Securities and Exchange Commission filings, accounted for 25%, or $17.5 billion, of the chipmaker’s annual revenue in 2023,
