🧠 Food for thought

Implications, context, and why it matters.

U.S. support shapes TSMC’s Arizona buildout

• The board approved up to US$20 billion for its Arizona unit, part of a US$65 billion plan to build three chip plants in Phoenix 1.
• Washington backed the project with up to US$6.6 billion in grants plus up to US$5 billion in loans through the CHIPS and Science Act, a U.S. law meant to lift chip production at home 1.
• TSMC can also use a 25% federal tax credit on manufacturing investments. That credit was valued at US$7 billion to US$8 billion for the first US$40 billion phase alone 2.

TSMC is spending at record levels to widen its manufacturing edge

• The spending is meant to build more advanced chip capacity than Intel or Samsung, helping TSMC secure large orders from chip designers 3.
• Its 2026 budget of US$52 billion to US$56 billion is 27% to 37% above the prior year’s US$40.9 billion 4.
• About 70% to 80% will go to its most advanced production 4. Another 10% to 20% will fund advanced packaging, which combines multiple chips into one product for better performance 4. It will also cover mask making, which creates the templates used to etch chip circuits 4. This work lines up with its future 1nm-class (A10) process, expected to reach customers in 2030 or later 3.