Taiwan Semiconductor Manufacturing Company and Joe Biden’s administration have finalised more than $11bn in grants and loans to support the company’s US chipmaking plans, as the White House pushes to distribute subsidies before Donald Trump takes office.
The deal with the world’s biggest chipmaker, which includes up to $6.6bn in grants and up to $5bn in loans, is the first major award under the Chips Act to be finalised. It is also the largest foreign investment in a new manufacturing project in US history, according to the Department of Commerce.
TSMC supplies most of the world’s leading-edge chips, including Nvidia’s artificial intelligence GPUs. But the location of its fabs in Taiwan has led to anxieties about potential US-China tensions affecting supply.