The United States of America is pouring billions of dollars in new grant funding into domestic semiconductor production. And it’s going to publicly listed company.
What’s happening:
- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has landed $6.6B USD in new funding from the United States government through the CHIPS Act
By the numbers:
- Alongside of the $6.6B USD in new grant funding, Taiwan Semiconductor Manufacturing Company will also be eligible for another $5B USD in potential loans
- Taiwan Semiconductor Manufacturing Company has committed $65B USD in private investment into building 3 semiconductor manufacturing facilities in the United States of America
Why it matters:
- The new CHIPS Act funding will go directly towards building out new semiconductor manufacturing facilities in Phoenix, Arizona which is a big part of the United States plan for having access to more domestic production of semiconductors and decreasing dependence on foreign countries
- Taiwan, South Korea and Japan have historically been the most advanced countries for semiconductor and chip manufacturing, which has become much more relevant with the relentless boom in artificial intelligence technology and machine learning
Going deeper:
- The United States of America has been investing heavily into semiconductors lately, previously committing hundreds of millions of dollars in funding to Wolfspeed (NYSE: WOLF) for building out new semiconductor manufacturing infrastructure in upstate New York and central North Carolina
