After the Chips and Science Act in the US was enacted in 2022, funds for domestic semiconductor producers are beginning to be awarded.

An official release on Monday the 8^th April, announced that the US department of commerce had awarded Taiwan Semiconductor Manufacturing Co’ funding from the Chips and Science Act. The US government has committed US$6.6Bn in subsidies, and US$5Bn in potential government loans to support US-based production. In 2022, TSMC had begun construction on their fabrication plant in Arizona. From the realized government subsidies and loans, TSMC agreed to build a third factory in Arizona, raising its total investment in the United States from US$40Bn to US$65Bn.

The announcement finalises the USA’s attempts to seek investments into its domestic semiconductor production following its self-identified dependency on foreign suppliers for high-end chips in 2022. The USA has also previously placed steep restrictions on semiconductor manufacturing equipment and intellectual property exports to China, in an attempt to curb the drastic rise in production that could undermine their domestic prospects. Similarly, other EU countries and Japan have followed suite in an attempt to develop their own production lines.

TLC 512Gb wafer spot prices dipped in July 2023 to US$1.50 from a high of US$4.50 in January 2022 when the world experienced a massive chip shortage from the increased demand for portable electronics in 2022. Current TLC wafer spot prices stand at US$3.76. Despite the dip in spot prices due to poor portable electronic demand in 2023, Project Blue expects a recovery in 2024, driving wafer prices upwards. This coupled with high-end technology (3 nanometre) in low supply, will place a strain on the semiconductor environment when considering smart phone sales and prices.