U.S. Subsidy for TSMC Has AI Chips, Tech Leadership in Sight

By Alan Patterson , EETimes (April 15, 2024)

U.S. subsidies for Taiwan Semiconductor Manufacturing Co. (TSMC) will yield the nation’s first production of AI chips and a strong shot at tech leadership, according to analysts surveyed by EE Times. The experts caution that a workforce shortage remains a key downside for the revival of the U.S. semiconductor industry.

After the U.S. Department of Commerce last week announced a CHIPS Act plan for $6.6 billion in grants and up to $5 billion in loans for TSMC, the world’s top chip foundry said it will build a third fab in Phoenix, Arizona, raising its total investment in the U.S. to $65 billion from the previous $40 billion. The company said the new “Fab 3” will make chips with process tech that’s 2 nm and below, strengthening U.S. economic and national security. The chips will be vital to AI, U.S. Commerce Secretary Gina Raimondo said during an interview on CNBC.

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