Apple Chipmaker TSMC to Receive $6.6 Billion Grant to Step Up Production in the U.S.

[MacRumors]

The United States Commerce Department today announced a significant financial commitment to Apple chip supplier TSMC to make more chips in the U.S. (via Bloomberg).

The White House shared a statement explaining that the U.S. Commerce Department will allocate a $6.6 billion subsidy to TSMC for the advancement of semiconductor production in Phoenix, Arizona. TSMC will also receive $5 billion in loans and be eligible to claim an investment tax credit of up to 25% of capital expenditures. The move is part of a larger initiative under the CHIPS and Science Act, which aims to rejuvenate the United States' semiconductor manufacturing capabilities.

TSMC has already committed to an escalated investment of $25 billion, elevating its total investment to $65 billion. This is the largest foreign direct investment in a completely new project in U.S. history.

The chipmaker also announced plans to construct a third fabrication plant in Arizona by 2030. The first TSMC plant in Arizona will start producing 4nm chips next year. The second plant, which was originally designed to make 3nm chips, will also make 2nm ones by 2028. The third plant will produce 2nm chips with capacity to make even more advanced semiconductors in the future.

Apple's most advanced chips are currently made in Taiwan using TSMC's 3nm process, so the ability to make these chips and even more powerful ones in the future in the United States could represent a significant future shift in the company's supply chain.

Article Link: Apple Chipmaker TSMC to Receive $6.6 Billion Grant to Step Up Production in the U.S.

 

[madmin]

Maybe cheaper to help them build new fabs in the US than defend their existing ones

 

[HQuest]

TSMC has multiple clients, Apple being one of them. That is a very misleading news title.

 

[unregbaron]

Kind of amazing the way the world is rebalancing.

 

[tridley68]

Maybe that can take some of that money and reinvest it into a factory here in the United states 😂
And now hopefully we won't be facing shortages and delaying the iPhone 16.

 

[MacProFCP]

The timing of this makes me smile.

 

[croco_dile]

Once the US removes its dependency on TSMC, guess what happens next with Taiwan?

 

[zoomp]

Hahaha. What happened to free market?

 

[DougieS]

Maybe that can take some of that money and reinvest it into a factory here in the United states 😂
And now hopefully we won't be facing shortages and delaying the iPhone 16.

Did you even read the title of the article? Don’t even need to read the article to know this money is for exactly that…

 

[GroundLoop]

As far as I know (and I could be mistaken), but I thought only a subset of Mac Pros were assembled in the USA. What is the point of setting up TSMC fabs in the US just to ship them all back to China/etc? Unless this is mostly to support non-Apple products...then why would any of us on MacRumors care? I am pretty sure that the Wisconsin Foxconn plant isn't anything near what it was originally imagined to be.

 

[GrayFlannel]

This is actually an $11.6b deal.
$6.6bn in grants and up to $5bn in loans.

 

[Sasparilla]

As far as I know (and I could be mistaken), but I thought only a subset of Mac Pros were assembled in the USA. What is the point of setting up TSMC fabs in the US just to ship them all back to China/etc? Unless this is mostly to support non-Apple products...then why would any of us on MacRumors care? I am pretty sure that the Wisconsin Foxconn plant isn't anything near what it was originally imagined to be.

The point is that the U.S. wants to have some of the computer smartphone supply chain rooted back in the U.S. again and this is a part of it. Another angle is that Taiwan's big neighbor has been quite clear it is going to bring it back under its control - and nearly all of Apple's and hence much of the smartphone industry has its SOC's made there...were a war / invasion to happen the flow of chips / economy would stop. Guestimates are 2027 / 2028 for issues to likely happen with Taiwan. TMSC's factories here in the U.S. will always be a step or two behind the top ones in Taiwan, but its something.

 

[Nuno Lopes]

I think this is great news. The more independent is the US from China, the better. The EU should take a lesson from this!

 

[Steve121178]

I think this is great news. The more independent is the US from China, the better. The EU should take a lesson from this!

What lesson would the EU take from this?

 

[Nuno Lopes]

What lesson would the EU take from this?

That in the long run exporting and self sufficiency is better than importing and dependency. Keep the second to the minimum and maximize the first.

I think the US and the EU have forgotten this and played the game for short term gains. Will see, but it seams to me that China, even Russia, today are more self sufficient than the US and the EU. That is why we are witnessing this commotion across the globe.

 

[GrayFlannel]

Maybe that can take some of that money and reinvest it into a factory here in the United states 😂
And now hopefully we won't be facing shortages and delaying the iPhone 16.

The subsidies are from the 2022 Chips Act. Intel is receiving $8.5bn in grants and up to $11bn in loans.

 

[1738]

I just awaiting the inevitable "Foxconn facing employment shortage in the States. Its like people don't want to work in a factory for minimum wage."

 

[GrayFlannel]

The timing of this makes me smile.

Too ambiguous to understand but a certain coincidence of timing and location(s) is undeniable…yet still necessary.

 

[Steve121178]

That in the long run exporting and self sufficiency is better than importing and dependency. Keep the second to the minimum and maximize the first.

I think the US and the EU have forgotten this and played the game for short term gains. Will see, but it seams to me that China, even Russia, today are more self sufficient than the US and the EU. That is why we are witnessing this commotion across the globe.

The EU isn't against exporting or self sufficiency though. The EU is not playing games either. They just have strict rules on competition, monopolies & particularly privacy/personal data that US tech companies can get away with abusing in most parts of the world, but not in the EU.

 

[redcarlsen]

The point is that the U.S. wants to have some of the computer smartphone supply chain rooted back in the U.S. again and this is a part of it. Another angle is that Taiwan's big neighbor has been quite clear it is going to bring it back under its control - and nearly all of Apple's and hence much of the smartphone industry has its SOC's made there...were a war / invasion to happen the flow of chips / economy would stop. Guestimates are 2027 / 2028 for issues to likely happen with Taiwan. TMSC's factories here in the U.S. will always be a step or two behind the top ones in Taiwan, but its something.

Any talk of “reunification” or “bring it BACK under its control” is CCP propaganda. Taiwan was never under their control to begin with.
By accepting their language and repeating theirs lies, you’ve already given too much ground.

 

[GrayFlannel]

Did you even read the title of the article? Don’t even need to read the article to know this money is for exactly that…

Actually reading the original story and other articles would help understand the big picture.

TSMC Gets $11.6 Billion in US Grants, Loans for Chip Plants

The US plans to award Taiwan Semiconductor Manufacturing Co. $6.6 billion in grants and as much as $5 billion in loans to help the world’s top chipmaker build factories in Arizona, expanding President Joe Biden’s effort to boost domestic production of critical technology.

www.bloomberg.com

TSMC boosts Joe Biden‘s AI chip ambitions with $11.6bn US produnction deal - Financial Times, 2024-04-08

Intel to receive $8.bn in US funding for high-end chip manufacturing - Financial Times, 2024-03-20

https://www.wsj.com/tech/taiwanese-chip-making-giant-tsmc-gets-6-6-billion-for-arizona-project-f75e9de4?mod=lead_feature_below_a_pos1

 

[gatorvet96]

As far as I know (and I could be mistaken), but I thought only a subset of Mac Pros were assembled in the USA. What is the point of setting up TSMC fabs in the US just to ship them all back to China/etc? Unless this is mostly to support non-Apple products...then why would any of us on MacRumors care? I am pretty sure that the Wisconsin Foxconn plant isn't anything near what it was originally imagined to be.

They are really small. Doesn't take much to ship them. So many parts in the iPhone are made all over the place and shipped to China or India for manufacturing. Not a big deal.

 

[bodhisattva]

I just awaiting the inevitable "Foxconn facing employment shortage in the States. Its like people don't want to work in a factory for minimum wage."

Hard to compete with international factories that pay less and work more hours.

 

[1738]

Maybe that can take some of that money and reinvest it into a factory here in the United states 😂
And now hopefully we won't be facing shortages and delaying the iPhone 16.

Yeah, then they'll just be dealing with a shortage of US workers willing to work in a factory of minimum wage....

 

[citysnaps]

Maybe that can take some of that money and reinvest it into a factory here in the United states 😂
And now hopefully we won't be facing shortages and delaying the iPhone 16.

Please let TSMC know how you feel about that. Perhaps they'll even build a foundry in the US.