TSMC Gets $11.6 Billion in U.S. Grants, Loans for Chip Plants

(Bloomberg) — The U.S. plans to award Taiwan Semiconductor Manufacturing Co. $6.6 billion in grants and as much as $5 billion in loans to help the world’s top chipmaker build factories in Arizona, expanding President Joe Biden’s effort to boost domestic production of critical technology.

Its shares rose as much as 3.7% Tuesday, notching their biggest gain in more than a month. Under the preliminary agreement announced by the U.S. on Monday, TSMC will construct a third factory in Phoenix, adding to two facilities in the state that are expected to begin production in 2025 and 2028. In total, the package will support more than $65 billion in investments at the three plants by TSMC, the go-to chipmaker for companies such as Apple Inc. and Nvidia Corp.