Taiwan Semiconductor Manufacturing Co (NYSE:TSM) continues to ride high with its geographical expansion buoyed by the artificial intelligence frenzy.
It has committed to over 60% increase in its U.S. investment, raising the total to over $65 billion backed by a $6.6 billion U.S. federal grant.
This investment will enable the production of the world's most advanced 2-nanometer chips in the United States.
U.S. Commerce Secretary Gina Raimondo announced that TSMC plans to construct an additional, third chip manufacturing facility in Phoenix, Arizona, slated to become operational by 2030. The project represents the largest foreign direct investment in U.S. history for a greenfield project, Nikkei Asia reports.
In addition to receiving a substantial federal grant, TSMC will benefit from $5 billion in loans and eligibility for an investment tax credit, covering up to 25% of capital expenditures.
This expansion is supported by 14 suppliers who are set to build or enlarge their operations in Arizona or other U.S. ...