Yazılar

US Finalizes $6.6 Billion Chips Subsidy for TSMC Ahead of Trump’s Presidency

The U.S. Commerce Department announced on Friday the completion of a $6.6 billion subsidy deal with Taiwan Semiconductor Manufacturing Co. (TSMC) to support semiconductor production in Phoenix, Arizona. The agreement, part of the $52.7 billion Chips and Science Act, marks the program’s first major award since its inception in 2022.

Deal Highlights

  • Expanded Investment: TSMC agreed to increase its total Arizona investment from $40 billion to $65 billion, adding a third fab in Arizona by 2030.
  • Advanced Manufacturing: TSMC will produce 2-nanometer technology chips at its second Arizona fab, set to begin production in 2028. It will also deploy its A16 chip manufacturing technology, one of the world’s most advanced.
  • Financial Structure: In addition to the $6.6 billion subsidy, the agreement includes up to $5 billion in low-cost government loans. Payments will be tied to project milestones, with at least $1 billion expected to be released by year-end 2024.

Commerce Secretary Gina Raimondo highlighted the strategic importance of the deal, emphasizing its role in ensuring the U.S. produces cutting-edge chips domestically. “We had to convince TSMC that they would want to expand,” she said, stressing the economic and national security implications of the agreement.

National Security and Policy Concerns

The announcement comes amid heightened scrutiny of semiconductor technology exports to China. On Saturday, reports emerged that the Commerce Department had instructed TSMC to halt shipments of advanced chips to Chinese customers. Raimondo did not confirm the directive but stated, “Investing in TSMC to expand here is offense—defense is ensuring our most sophisticated technology does not reach adversaries like China.”

The subsidy agreement also requires TSMC to forgo stock buybacks for five years and share excess profits with the U.S. government under an “upside sharing agreement.”

Context and Challenges

The Chips and Science Act was designed to bolster domestic semiconductor production, a critical industry where the U.S. lags behind global leaders. Currently, no leading-edge chips are produced domestically. TSMC CEO C.C. Wei called the deal a key accelerator for advancing U.S. chip manufacturing capabilities.

However, President-elect Donald Trump has criticized the Chips Act, raising questions about the program’s future under his administration. Meanwhile, Commerce has allocated additional funds for other semiconductor projects, including $6.4 billion for Samsung in Texas, $8.5 billion for Intel, and $6.1 billion for Micron Technology. Raimondo aims to finalize these agreements before President Joe Biden leaves office in January.

Geopolitical Implications

The U.S. push for semiconductor independence underscores broader strategic concerns about global supply chains and national security. Raimondo reiterated the importance of balancing offensive and defensive strategies, ensuring subsidies support U.S. technological leadership while preventing advanced technologies from reaching competitors like China.

Outlook

With TSMC’s increased commitment and advanced chip production capabilities, the U.S. aims to regain its footing in the global semiconductor market. However, challenges remain, including Trump’s potential policy changes and the delicate geopolitical balance with China.

 

Lithuania’s Opposition Social Democrats Lead in Parliamentary Election, Set to Address Economic and Security Issues

The opposition Social Democratic (SD) party has taken a commanding lead in Lithuania’s parliamentary election’s second round, driven by voter concerns over the cost of living and regional security. Preliminary government data shows the center-left Social Democrats securing 33 seats with 64% of votes counted, building on their 20-seat lead from the first round, and placing them ahead of the ruling Homeland Union Party, which has won 6 additional constituencies alongside 18 seats from the first round.

Lithuania’s hybrid voting system combines popular votes with district-based run-offs, favoring larger parties in the 141-member parliament. If the Social Democrats form a government, they are expected to maintain Lithuania’s assertive stance against Russia, alongside sustained defense spending. Lithuania currently allocates 3% of its GDP to defense, ranking as NATO’s sixth-highest contributor by percentage.

Prime Minister Ingrida Simonyte’s center-right coalition has faced declining popularity due to persistent inflation, degraded public services, and increasing income inequality. The SD, led by Vilija Blinkeviciute, is already negotiating a majority coalition with two other parties, For Lithuania and the Farmers and Greens Union. During the run-offs, the SD allied with opposition parties to support candidates challenging Homeland Union nominees.

The Social Democrats’ campaign has prioritized reducing inequality, proposing higher taxes on wealthy citizens to bolster healthcare and social support. Meanwhile, security remains crucial for Lithuania, a NATO member bordering Russia’s Kaliningrad and Belarus, as many citizens fear potential Russian aggression. A recent survey revealed that 75% of Lithuanians believe an attack from Russia is likely in the near future, underscoring the national importance of stability amid regional unrest.

Full election results are anticipated around midnight (22:00 GMT).