The Biden administration has COMPLETED Taiwan Semiconductor Manufacturing Company (TSM) Chips Act stimulus funds to support its US manufacturing sites.

The Taiwanese chip maker has signed a preliminary agreement in April for $6.6 billion in grants from the federal Chips and Science Act. The finalized award comes after the US Department of Commerce completed its due diligence process. TSMC is also eligible for proposed loans of up to $5 billion.

TSMC will receive at least $1 billion of the total reward this year due to already meeting some of the necessary benchmarks, Bloomberg reportedciting Biden administration officials. The award will be paid as the company’s factories in Phoenix, Arizona complete certain phases of the project.

The federal funding will go toward TSMC’s $65 billion in private investment to build three state-of-the-art chip manufacturing facilities in Phoenix. TSMC already has two facilities planned in Phoenix which are expected to start production in 2025 and 2028. Part of the funding will support the construction the third facility.

“This is the largest foreign direct investment in a greenfield project in the history of the United States,” US President Joe Biden said in a statement. “TSMC’s first of three facilities is on track to fully open early next year, meaning that for the first time in decades, a manufacturing plant in America will produce the leading chips used in our most advanced technologies – from smartphones to self-driving vehicles to data centers powering artificial intelligence.”

The finalized funding comes as the Biden administration and chipmakers reported rush to close the deals before the incoming Trump administration. Polar Semiconductor was the first to finish negotiations and finalize his consent. Intel, the American chip pioneer (INTC) it seems that expects to complete its $8.5 billion Chips Act grant before the end of the year.

During an appearance on The Joe Rogan Experience, President-elect Donald Trump criticized the Chips Act, which was passed by the Biden administration in 2022 — in part for boost domestic advanced chip production.

“That chip business is so bad, we’ve invested billions of dollars for rich companies to come borrow money and build chip companies here and they won’t give us the good companies anyway,” Trump. said on the podcast, adding that the US should put tariffs on chips coming into the US

Meanwhile, TSMC’s chip production yields — or the number of functional chips it can produce per manufacturing process — at its Phoenix site are approx. four percentage points higher than those of comparable factories in Taiwan, Bloomberg previously reported.

The Biden administration said the Chips Act funding includes a commitment to produce A16 chips in Arizona. In September, independent journalist Tim Culpan reported that TSMC is A16 chip production for Apple at Phase 1 of Fab 21 in Phoenix. The production volume of the A16, which was released on iPhone 14 Pro in 2022, it “will grow considerably” after the second stage of TSMC’s Phase 1 plant is finished, Taiwan-based Culpan said. This would put TSMC’s US site on track its target in the first half of next year, he said.

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