TSMC will build a 2nm chip factory in the US and will receive billions in subsidies – IT Pro – News

Taiwanese chipmaker TSMC will build a 2nm factory in the United States. The chip giant made the announcement on Monday. The company is receiving a subsidy of $6.6 billion to build its factories in the United States. It will be TSMC's third factory in the country.

TSMC and the US government reached a preliminary agreement on Monday, TSMC wrote in a press release. The Taiwanese chipmaker wants to increase its total investment in the United States from $40 billion to $65 billion. The additional funds will be used to build a factory next to the two other chip factories TSMC is currently building in Arizona. This newer factory will produce chips using “2nm or more advanced processes.” TSMC's current roadmap is only 2nm. TSMC's previously announced 3nm fab will also be upgraded and will also produce 2nm chips.

The chipmaker is making additional investments in the context of the US Chips and Science Act, through which President Biden's government will free up tens of billions for the chip sector. TSMC will receive up to $6.6 billion in subsidies for its projects in Arizona. The company can also obtain cheap loans of up to $5 billion from the US government. Sources previously told the Wall Street Journal that TSMC has requested up to $15 billion in support, including $6 billion to $7 billion in direct support.

TSMC's US factories will be located on the campus in Phoenix. The first factory will produce chips with a resolution of 4 nanometers, and will be opened in the first half of next year. The second plant will begin production in 2028. TSMC said Monday that the third new plant will be opened “at the end of this decade.” The first chip factory was initially scheduled to open this year, but was postponed due to a shortage of installers of chip production equipment. The second plant has also been postponed from 2026 to 2028.

Like many other countries, the United States wants to become more independent in the chip sector, partly due to growing geopolitical tensions with China, among other things. Therefore, the United States has up to $53 billion in subsidies available to the chip sector. In addition to TSMC, Intel and GlobalFoundries Support under this law. Samsung and memory maker Micron are also expected to receive funding.