Reported by 21st Century Business Herald reporter Ni Yuqing and intern Zhu Ziye from Shenzhen
Recently, TSMC announced that the US Department of Commerce and TSMC Arizona have signed a non binding preliminary memorandum of terms, under the rules of the Chip and Science Act, TSMC will receive up to $6.6 billion in direct subsidies.
Meanwhile, the memorandum proposes to provide up to $5 billion in loans to TSMC, and TSMC also plans to apply for up to 25% investment tax relief from the US Treasury for the eligible portion of TSMC Arizona's capital expenditures. In addition, TSMC announced plans to establish a third wafer fab in TSMC Arizona to meet customer needs.
TSMC stated in its announcement that it will maintain its commitment to long-term financial goals, with a compound annual growth rate of 15% to 20% in US dollars, a gross profit margin of over 53%, and a return on equity of over 25%.
TSMC officially disclosed that the first wafer fab in Arizona, USA will begin production of 4-nanometer process technology in the first half of 2025 according to schedule, and the second wafer fab will adopt 2-nanometer process technology, expected to start production in 2028; The third wafer fab is expected to adopt 2 nanometers or more advanced process technology for chip production by the end of the 2020s.
At the same time, TSMC stated that the plan to establish a third wafer fab will result in TSMC's total capital expenditure at its Phoenix stronghold in Arizona exceeding $65 billion. This will be the largest foreign direct investment case in Arizona's history and also the largest foreign direct investment case in Greenfield in US history.
In recent years, TSMC's production system has continuously expanded overseas. In addition to its three factories in Arizona, USA, TSMC has also established two wafer factories in Kumamoto Prefecture, southern Japan. Last year, TSMC announced an investment of approximately 3.5 billion euros in Dresden, Germany to establish a wafer factory, forming a global layout spanning Europe, America, and Asia.
In the view of industry insiders, in recent years, major regions around the world have been strengthening their local manufacturing capabilities, especially in the competition for manufacturing highlands such as semiconductors. Therefore, countries are recruiting chip giants to build factories.
According to reports, Samsung is also planning to significantly increase its semiconductor investment in Taylor, Texas, USA in the near future. On the basis of the planned investment of $17 billion announced in 2021 to build a 5nm wafer factory, a new advanced process wafer factory, an advanced packaging factory, and a research and development center will be built, bringing the overall investment amount to approximately $44 billion.
The preferential policies in the field of semiconductor manufacturing and research and development in the United States have also continued. Last month, Intel announced that it would receive $8.5 billion in direct subsidies from the US government to promote Intel's semiconductor manufacturing and research and development projects in Arizona, New Mexico, Ohio, and Oregon.
On the other hand, in recent times, the United States has continued to tighten semiconductor export controls and intends to strengthen joint actions among alliances, and the global semiconductor landscape will continue to be influenced by policies.