U.S. confirms up to 9.2 trillion won subsidy to TSMC ahead of Trump's 2nd term

The U.S. government of Joe Biden has confirmed $6.6 billion (about 9.2 trillion won) in semiconductor aid to Taiwan's TSMC, the world's largest foundry (semiconductor consignment production) company, ahead of the launch of the second administration of President-elect Donald Trump.

"The Department of Commerce awarded TSMC Arizona, a subsidiary of TSMC, up to $6.6 billion in direct funding under funding opportunities for the Semiconductor Act (CHIPS) grant program for commercial manufacturing facilities," the White House said in a statement on the 15th local time.

The White House also said it would provide TSMC Arizona with low-interest loans worth up to $5 billion, part of the $75 billion lending authority provided under the Semiconductor Act.

The direct funding comes after the completion of a preliminary memorandum of transactions (PMT) and due diligence by the Commerce Department announced on April 8, which supports TSMC's plan to spend more than $65 billion to build three high-tech plants in Phoenix, Arizona, the White House said.

The announcement comes more than two months before Trump's inauguration, which is scheduled for January 20 next year.

Trump, who has criticized the Biden administration's semiconductor law, said last month that "semiconductor companies are very wealthy companies" and that "they stole 95% of our business and are now in Taiwan."

TSMC has reportedly canceled the completion ceremony of its U.S. plant, which was scheduled for early next month, due to growing uncertainty over U.S. government policies regarding the next semiconductor.