Taiwan Semiconductor Manufacturing Co. (TSMC) and GlobalFoundries have finalized multi-billion-dollar agreements in grants and loans from the U.S. government, intended to bolster domestic semiconductor production, according to insiders familiar with the discussions. The finalized deals stem from preliminary agreements earlier in 2024 under the Biden administration's Chips and Science Act.

The agreements allocate significant funding to support both companies' U.S.-based manufacturing projects. TSMC's package, initially outlined in April, includes $6.6 billion in grants and up to $5 billion in loans for the construction of three semiconductor facilities in Phoenix, Arizona. GlobalFoundries' February agreement secures $1.5 billion in grants and as much as $1.6 billion in loans to finance a new plant and expand existing facilities in New York and Vermont.

The Chips and Science Act dedicated $39 billion in grants and substantial tax incentives to revive the U.S. semiconductor industry after decades of manufacturing shifted to Asia. The Act has prompted approximately 10 times that amount in private investment commitments for various semiconductor-related facilities, ranging from advanced chip production to supply chain components.

Industry leaders are eager for the finalized contracts, as funding will be released in stages upon meeting project milestones. With a shift in U.S. leadership expected in January, companies are keen to secure these agreements, especially following former President Donald Trump's recent critical remarks on the program. While new House Speaker Mike Johnson has suggested a “streamlining” of the Act, the exact impact of Republican control on the program remains uncertain.