Taiwanese chipmaker TSMC to build 2nm factory in US The chip company announced this on Monday. The company is getting $6.6 billion in subsidies to build its factories in the United States. This will be the third DSMC factory in the country.

TSMC and the US government reached a preliminary agreement on Monday, TSMC writes in a press release. The Taiwanese chipmaker wants to increase its total investments in the US from $40 billion to $65 billion. The extra money will be used to build a factory next to two other chip factories TSMC is currently building in Arizona. The new factory will produce chips using ‘2nm processes or more advanced’. TSMC’s current roadmap does not go beyond 2nm. TSMC’s previously announced 3nm factory will also be upgraded to produce 2nm chips.

The chipmaker is making additional investments on the back of the American Chips and Science Act, which will free up tens of billions for the chip industry from President Biden’s administration. TSMC will receive up to $6.6 billion in grants for its projects in Arizona. The company can get up to $5 billion in cheap loans from the US government. Sources previously told The Wall Street Journal that DSMC has sought up to $15 billion in support, including $6 billion to $7 billion in direct grants.

US TSMC factories will be located in a complex in Phoenix. The first factory will produce 4nm chips and will open in the first half of next year. The second factory will start production in 2028. TSMC said Monday that the new, third factory will open “by the end of this decade.” The first chip factory was scheduled to open this year, but was delayed due to a shortage of installers for chip manufacturing equipment. The second factory has also been postponed from 2026 to 2028.

Like many countries, the US wants to become more independent in the chip industry, due to rising geopolitical tensions with China, among others. So the US is providing up to $53 billion in subsidies to the chip industry. In addition to DSMC, Intel and Global Foundries Grant under that Act. Samsung and memory maker Micron are also expected to receive funding.