On April 8th, TSMC announced that the US Department of Commerce and TSMC Arizona have signed a non binding preliminary memorandum of understanding (PMT), and TSMC Arizona will receive up to $6.6 billion in direct subsidies. The preliminary memorandum also proposes to provide up to $5 billion in loans to TSMC. Meanwhile, TSMC announced plans to establish a third wafer fab in TSMC Arizona to meet customer needs. TSMC plans to apply for up to 25% investment tax credit from the US Treasury Department for the eligible portion of TSMC Arizona's capital expenditures.