The Biden administration has decided to provide a subsidy of 1 trillion yen for the construction of TSMC's new factory in Arizona. We will explain the background and impact of this move to revive the U.S. semiconductor industry and strengthen economic security.
🟦 U.S. strengthens semiconductor industry with 1 trillion yen subsidy to TSMC
The Biden administration has finalized a subsidy of about 1 trillion yen for a semiconductor factory to be built in Arizona by Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC). The grant is based on the CHIPS Science Act, a key policy to revive the U.S. semiconductor industry.
TSMC’s Arizona plant will be manufactured using state-of-the-art 4n (nano)m and 2nm semiconductor processes, starting with the first plant, which is scheduled to start operations in early 2025. The initial production yield of the Arizona plant was comparable to that of a similar plant in Taiwan. The project is also expected to create more than 6,000 direct jobs, which will be a significant benefit to the U.S. economy.
🟦 Background and Purpose of Subsidy Payments
This grant is a strategic step toward strengthening U.S. economic security and technological competitiveness. Realizing the manufacturing of state-of-the-art semiconductors in the U.S. for the first time in decades will lead to a shift away from dependence on imports and a stable supply of critical technologies. As a result, it is expected to be used in a wide range of fields such as smartphones, self-driving cars, and AI applications.
In addition, through the CHIPS and Science Act grants and loan programs, it is expected that the semiconductor production base in the United States will continue to be strengthened.
🟦 Summary
The Biden administration’s 1 trillion yen subsidy is a major step toward reviving the U.S. semiconductor industry. TSMC’s Arizona plant will become a base for semiconductor manufacturing using cutting-edge technology, which is expected to have a significant impact on the U.S. economy and national security.
Changes in policy due to the change of administration in the United States and the relationship with Taiwan’s semiconductor industry may be the focus of discussion, and future developments will be closely watched.
