TSMC stock surges on Biden’s $11.6 billion funding to boost US chip manufacturing

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By journalsofus.com

  • TSMC shares surged on Monday on a nearly $12 billion deal with the US to boost chip manufacturing.

  • TSMC is set to receive up to $6.6 billion in grants and $5 billion in direct funding under the CHIPS and Science Act.

  • TSMC’s $65 billion investment is the largest foreign direct investment in Arizona and the largest greenfield project in U.S. history.

Shares of Taiwan Semiconductor Manufacturing Co. rose 3.2% on Monday as President Joe Biden’s administration approved about $12 billion in grants and loans for the world’s leading semiconductor company to boost manufacturing operations in the US.

TSMC stock traded as high as $145.92 per share around 10:30 a.m. ET, reaching a high of around $143 shortly after 1 p.m.

The deal positions the Taiwanese chip company to receive a $6.6 billion grant and $5 billion in direct funding from the Biden administration as part of the Chips and Science Act passed in 2022.

In a press release, TSMC unveiled plans for a third production facility at its planned Phoenix site by 2028 to meet growing US semiconductor demand. With an investment of more than $65 billion, the plan is the largest foreign direct investment in Arizona and the largest greenfield project in U.S. history.

In a separate release on Monday, the US Commerce Department said chip-manufacturing facilities in Arizona will power big tech companies like AMD, Apple, Nvidia and Qualcomm.

Combined with the two previous fab facilities on track to begin production, the three plants are expected to add 6,000 high-tech jobs and 20,000 manufacturing jobs, the Commerce Department said.

President Biden said, “TSMC’s renewed commitment to the United States, and its investment in Arizona, represents a broader story for semiconductor manufacturing that is made in America and for America’s leading technology firms to make those products.” With strong support on whom we rely every day.” Redemption.

The cooperation with Taiwan’s largest chip maker reinforces the US’s goal to produce 20% of the world’s leading chips by 2030 and reduce reliance on China’s high-tech manufacturing as tensions between the superpowers rise.

Last Wednesday, a powerful 7.4 magnitude earthquake struck the east coast of Taiwan, temporarily halting TMSC operations in some locations.

Read the original article on Business Insider

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