TSMC and GlobalFoundries secure $13B in Chips Act funds ahead of Trump's inauguration

TSMC and GlobalFoundries obtain $13B from Chips Act before Trump's inauguration, amid concerns over the act's future.

: TSMC and GlobalFoundries secured $13 billion in funds from the Chips Act as Trump's inauguration approaches. Despite these agreements, Trump has criticized the act and his administration may not support further payments. The money includes $6.6 billion in grants and $5 billion in loans for TSMC, and $1.5 billion for GlobalFoundries. Congress initially approved $280 billion for domestic chip manufacturing to reduce reliance on foreign semiconductors.

TSMC and GlobalFoundries have secured $13 billion in Chips Act funds, with TSMC receiving a $6.6 billion grant and $5 billion loan to construct a 2nm chip fab in Arizona. GlobalFoundries will receive $1.5 billion to build a semiconductor fab in New York and expand operations in Vermont.

These fund agreements were finalized ahead of President-elect Donald Trump's inauguration, who has criticized the Chips Act, preferring tariffs over subsidies. The legislation, passed in 2022, aims to bolster the U.S.'s domestic semiconductor production, currently behind countries like Taiwan and South Korea.

Nevertheless, the Chips Act is designed to lessen U.S. dependency on foreign semiconductors and restrict benefits to companies operating in adversary nations. Although supportive companies include Intel, Samsung, and Nvidia, around 40% of the funding has faced delays. Republican House Speaker Mike Johnson initially pushed to repeal the act but later withdrew the proposal.

CHIPS Actsemiconductor fundingmanufacturing