TSMC secures $6.6 billion funding from U.S. Commerce Department

Taiwan Semiconductor Mfg. Co. Ltd. (TAI: 2330) has secured $6.6 billion funding from the U.S. Commerce Department. Its shares are advancing in premarket.

TSMC boosts planned investment in Arizona

On Monday, the multinational based out of Hsinchu, Taiwan said it now plans on investing over $65 billion in the United States including a third fab in Arizona by 2030.

Its initial commitment was for $40 billion only.

TSMC will start manufacturing the most advanced 2-nm chips at its second Arizona facility in 2028. Gina Raimondo – the U.S. secretary of commerce said in a statement today:

TSMC is an Apple and Nvidia supplier

Note that Taiwan Semiconductor Mfg. Co. Ltd. is the world’s largest semiconductor contract manufacturing company that supplies to the likes of Apple Inc and Nvidia Corp.

The New York listed firm will commence mass producing at its first U.S. fab before the second half of 2025. TSMC also secured low-cost government loans worth up to $5.0 billion from the Commerce Department on Monday.

The Taiwanese giant will produce tens of millions of most sophisticated chips at its three fabs in Arizona at full capacity which will help “unleash their [its U.S. customers] innovations”.

The news arrives only weeks after peer Intel Corp also received $8.5 billion in grants from the Commerce Department (read more).