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Taiwan Semiconductor Manufacturing Co. (TMSC) is the first CHIPS Act awardee to get part of the money that the government has promised. The Biden administration has finalized its grants for TSMC, which expects to receive $6.6 billion in grants as part of their agreement to grow semiconductor production in the US. TSMC will also loan another $5 billion from the government to fund the expansion of its planned $65 billion three-factory complex in Arizona. According to Bloomberg, it's getting at least $1 billion from the total before the year ends, since it has already met a certain set of requirements.
In October, a Canadian research firm discovered that Huawei was using TSMC chips for its artificial intelligence accelerators even though that violates US government sanctions. TSMC denied having any working relationship with Huawei, and it stopped shipping to the client that may have been illegally sending its chips to Huawei. It also decided to stop producing advanced AI chips for its Chinese clients, reportedly because it wanted to show the US government that it's "not acting against US interests."
"Today’s final agreement with TSMC — the world’s leading manufacturer of advanced semiconductors — will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade.... The first of TSMC’s three facilities is on track to fully open early next year," President Joe Biden said in a statement.
Other companies, like Intel and Samsung, are still waiting to get their grants. Business groups are reportedly urging the government to finalize their CHIPS Act deals before Biden leaves the office. While they're not worried about the new administration killing the CHIPS Act, which enjoyed bipartisan support, they apparently want to avoid the possibility of having to renegotiate with the government.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/u...n-chips-act-incentives-143007608.html?src=rss
In October, a Canadian research firm discovered that Huawei was using TSMC chips for its artificial intelligence accelerators even though that violates US government sanctions. TSMC denied having any working relationship with Huawei, and it stopped shipping to the client that may have been illegally sending its chips to Huawei. It also decided to stop producing advanced AI chips for its Chinese clients, reportedly because it wanted to show the US government that it's "not acting against US interests."
"Today’s final agreement with TSMC — the world’s leading manufacturer of advanced semiconductors — will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade.... The first of TSMC’s three facilities is on track to fully open early next year," President Joe Biden said in a statement.
Other companies, like Intel and Samsung, are still waiting to get their grants. Business groups are reportedly urging the government to finalize their CHIPS Act deals before Biden leaves the office. While they're not worried about the new administration killing the CHIPS Act, which enjoyed bipartisan support, they apparently want to avoid the possibility of having to renegotiate with the government.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/u...n-chips-act-incentives-143007608.html?src=rss
