TSMC to build 1.6nm semiconductor factory with $1 trillion in direct investment from US government

The US Department of Commerce announced that it would directly invest $6.6 billion (approximately 1 trillion yen) in TSMC under the CHIPS Act. At the same time, it was also revealed that a semiconductor factory using TSMC's 1.6nm process rule would be built in the US.

Biden-Harris Administration Announces CHIPS Incentives Award with TSMC Arizona to Secure US Leadership in Advanced Semiconductor Technology | US Department of Commerce
https://www.commerce.gov/news/press-releases/2024/11/biden-harris-administration-announces-chips-incentives-award-tsmc

The CHIPS Act is a law aimed at supporting and promoting the semiconductor industry in the United States, providing subsidies to companies operating in the country. Since President-elect Donald Trump has expressed opposition to the CHIPS Act, there have been moves to speed up the contract before Trump takes office, and on November 7, 2024, it was reported that 'TSMC and GlobalFoundries have reached an agreement with the Department of Commerce.'

Semiconductor manufacturers TSMC and GlobalFoundries reach agreement with Department of Commerce on CHIPS subsidy assistance - GIGAZINE

On November 15, 2024, the Department of Commerce announced that it had signed a $6.6 billion direct investment agreement with TSMC. TSMC also has the right to receive loans of up to $5 billion (approximately 770 billion yen).

In addition, it was revealed that TSMC will build a semiconductor factory in Phoenix, Arizona, using the 1.6nm process rule semiconductor manufacturing technology 'A16'. The construction of the factory will create more than 20,000 construction-related jobs and approximately 6,000 manufacturing-related jobs. President Joe Biden said, 'This final agreement with TSMC will spur private investment of up to $65 billion (approximately 10 trillion yen) to build three cutting-edge facilities in Arizona and create tens of thousands of jobs by 2030.'

TSMC plans to begin mass production using the 2nm process in 2025 and the 1.6nm process in the second half of 2026.

TSMC announces that it will begin mass production of the 1.6nm generation semiconductor manufacturing process 'A16' in 2026 - GIGAZINE

By Li Jilin