The U.S. Commerce Department said Friday that Taiwan Semiconductor Manufacturing Co. will receive up to $6.6 billion in CHIPS Act funds. This company is an important part of modern chipmaking.
Besides the direct funds, Taiwan Semi will also be able to get loans of up to $5 billion.
The award will help the company with its plans to spend more than $65 billion in three new, cutting-edge factories in Phoenix, Arizona. The money will be given out based on the completion of project milestones.
Taiwan Semi stock TSM -1.22% went up a little in premarket trade. This year, the company that makes things on contract for companies like Nvidia has seen its stock rise 81%.
The government said it was the best foreign investment ever made in a new building project in the United States.
Next year, the first of the three buildings will open.
The government says that the three factories will make tens of millions of logic chips that will power things like 5G/6G smartphones, self-driving cars, and high-performance computer and AI apps.
Trump, who will be president in January, has said bad things about the CHIPS Act, which was passed in 2022. Bloomberg News said that many businesses are rushing to finish deals before Trump takes office. Before taking back what he said, House Speaker Mike Johnson told a reporter that his party would try to get rid of the law.
