US announced chip investment plans after observed progress

US announced plans to invest more than US$5 billion (A$7.67 billion) in semiconductor R&D

The announcement made on Friday delineated a strategic allocation of funds, earmarked for various initiatives, including the establishment of a National Semiconductor Technology Centre, as part of the broader framework outlined by the Chips and Sciences Act enacted in 2022. This announcement followed closely on the heels of reports surfacing in January, which shed light on the significant setback facing Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor manufacturer, in the form of delays plaguing the opening of its Arizona factory until as late as 2027 or beyond, thereby impacting the anticipated production of cutting-edge 3nm chips. Mark Liu, Chairman of TSMC, underscored the pivotal role of customer demand and governmental subsidies in shaping the company's decisions concerning overseas expansion.

Coinciding with this development, Japan's progress in establishing two TSMC factories gained traction, notably with the imminent commencement of operations for the first facility by the end of the current year, and plans for a second hub slated to come online in Kumamoto prefecture by the conclusion of 2027. The swift provision of funding for these ventures in Japan served as a stark contrast to the situation unfolding in the United States, where the allocation of financial resources for semiconductor initiatives appeared comparatively sluggish and restrained. Despite the substantial sums mentioned in the announcement, it was revealed that only a fraction of the earmarked funds had been disbursed at the time of the statement.