Taiwan Semiconductor Manufacturing Company (TSMC) has finalized a $6.6 billion subsidy from the U.S. Department of Commerce to support semiconductor production at its new facility in Phoenix, Arizona.

The funding marks the first major grant under the $52.7 billion CHIPS Program, announced in 2022 to bolster domestic semiconductor manufacturing.

The approval comes amid the presidency of Donald Trump, a vocal critic of the CHIPS Program, who is set to assume office shortly.

In April, TSMC increased its investment commitment in Arizona from $25 billion to $65 billion, pledging to establish a third fabrication plant in the state by 2030. The second plant, utilizing cutting-edge 2-nanometer technology, is set to begin production in 2028.

TSMC also announced plans to deploy its most advanced “A16” chip manufacturing technology at its U.S. facilities.

This development follows a directive from the U.S. Department of Commerce instructing TSMC to halt the supply of advanced chips to China, underscoring geopolitical tensions in the global semiconductor industry.

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