{"id":8090,"date":"2024-04-08T19:10:24","date_gmt":"2024-04-08T19:10:24","guid":{"rendered":"https:\/\/economicherald.net\/?p=8090"},"modified":"2024-04-08T19:10:24","modified_gmt":"2024-04-08T19:10:24","slug":"semi-superpower-tsmc-and-the-largest-foreign-greenfield-investment-in-us-history","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=8090","title":{"rendered":"Semi-Superpower: TSMC and the largest foreign greenfield investment in US history"},"content":{"rendered":"

The world\u2019s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC), embarrassingly flush with obscene amounts of US government cash, just agreed to instantly make the United States of America the chipmaking superpower.<\/p>\n

Armed with a new grant worth no less than $10.3 billion (US$6.6bn), TSMC has reportedly increases its US investment by more than 60% \u2013 or by more than $65bn \u2013 and produce the world\u2019s most advanced 2-nanometer chips on American soil.<\/p>\n

TSMC supplies its products to anything remotely in the Mega Tech\/wannabe global chip developer space, be it Apple or Amazon, even main competitors Nvidia and Qualcomm.<\/p>\n

That US$6.6bn direct funding to TSMC would be the US govt\u2019s largest cash grant to a foreign chipmaker ever. Although, for the moment, TSMC produces its most advanced chips exclusively in Taiwan: the hallowed 4-nm chips for AI training, designed by Nvidia and used for applications such as ChatGPT.<\/p>\n

TSMC is pretty much the global leader in semiconductor production and is by far the world\u2019s top provider of leading-edge logic chips, used in emerging tech and artificial intelligence (AI).<\/p>\n

The big announcement comes as brokers at US-based fundies KeyBanc hoist their price target on competitor Nvidia (NVDA) to US$1,200 a pop, up from US$1,100 and implying upside of more than a full third as per Monday morning in New York.<\/p>\n

Nvidia\u2019s GB200, which go for circa $US1.75m, are expected to be fully mainstream by next year, and KetBanc math reckons they could generate as much as $US140bn \u201cin revenues in (and) of itself.\u201d<\/p>\n

NVDA stock is meteoric. Up circa 80% YTD. <\/p>\n

Last year, NVDA stock soared more than 200%.
\n\u00a0<\/p>\n

A global semi-superpower<\/h2>\n

TSMC\u2019s pledge to expand in the States all but ensures the Americans will be on track to produce about 20% of the world\u2019s cutting-edge computer chips by the end of the decade, 2030, the Commerce Department said in a press release.<\/p>\n

The Commerce Secretary Gina Raimondo told local press that TSMC will also build a previously unannounced third chip factory in Arizona.<\/p>\n

Raimondo reckons that\u2019ll be churning out homemade chips in a little over five years.<\/p>\n

\u201cFor the first time ever, we will be making, at scale, the most advanced semiconductor chips on the planet here in the United States of America,\u201d Raimondo told reporters ahead of the Monday reveal.<\/p>\n

The investment will be the largest foreign direct investment in American history for a greenfield project, as per the US gov\u2019t.<\/p>\n

Then of course, there\u2019s the $5bn TSMC will also receive in loans and the final carrot: claiming a great big investment tax credit of up to 25% of any capex.<\/p>\n

I\u2019m tempted myself and I can only make French fries.<\/p>\n

No less than 14 global suppliers will also construct supporting factories around Pheonix in Arizona or somewhere else in the States to help the TSMC chip-churning plants.<\/p>\n

Almost three-quarters of all TSMC\u2019s semiconductor customers are American corporates and they\u2019ve already given a big thumbs up to the idea of buying American-made.
\n\u00a0<\/p>\n

Cash coming in cheap as CHIPS<\/h2>\n

The 2022 Biden Admin\u2019s CHIPS Act (and sciences) Act,\u00a0 is a very little off the table circa $US50bn fund aimed at fast-tracking homemade US chips in an attempt to slam the door on China chipmakers (it\u2019s a national security thing, so there\u2019s really, very<\/em> little off the table).<\/p>\n

It\u2019ll be only the second-largest CHIPS grant, the No 1 with a bullet remains the near $US20bn in grants and loans foisted on Intel.<\/p>\n

US President Joe Biden actually went to Arizona to celebrate those ones, so he\u2019s got some travel ahead considering there\u2019s still around $33bn to throw at the US semiconductor-making sector.<\/p>\n

\u201cThis is our fifth CHIPS announcement. We\u2019re on a roll, so we have more to come in the weeks ahead,\u201d Raimondo told reporters<\/p>\n

Samsung and SK Hynix are also throwing billions of industry investments across America and would likely be next out of towners to benefit from the overflowing munificence of\u00a0 Washington.<\/p>\n

\u00a0<\/p>\n

<\/span><\/p>\n

The post Semi-Superpower: TSMC and the largest foreign greenfield investment in US history<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The world\u2019s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC), embarrassingly flush with obscene amounts of US government cash, just agreed to instantly make the [more…]<\/a><\/p>\n","protected":false},"author":0,"featured_media":8091,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nSemi-Superpower: TSMC and the largest foreign greenfield investment in US history - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=8090\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Semi-Superpower: TSMC and the largest foreign greenfield investment in US history - 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