TSMC and GlobalFoundries Finish Talks Over Chips Act Awards

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(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. and GlobalFoundries Inc. have finished negotiating binding agreements for billions of dollars in grants and loans to support US factories, people familiar with the matter said.

The deals, announced as tentative agreements earlier this year, come as the Biden administration races to get Chips and Science Act money out the door before the end of its term in January.

It is unclear when the agreements will officially be signed and the incentives unveiled, according to the people, who asked not to be identified because the conversations are private. The award amounts are roughly in line with the preliminary agreements, the people said.

https://finance.yahoo.com/news/tsmc-globalfoundries-finish-talks-over-224530103.html

 

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I suspect the binding agreements with TSMC, Globalfoundries, and several other companies (TI, HP, Microchip, etc) may complete a while back already. But the US government delayed the announcement due the protracted negotiation with Intel and worries about the unpredictable election impacts if announced.

Now the pressure is on Intel. Intel either takes Secretary Gina Raimondo's offer now or wait for Trump next year to start a new negotiation. That can pose either more problems or more rewards. But it can further delay the date Intel can receive the CHIPS Act money for many months.