Taiwan Semi, GlobalFoundries said to conclude talks over final CHIPS Act awards

Taiwan Semiconductor Manufacturing (NYSE:TSM) and GlobalFoundries (NASDAQ:GFS) have concluded discussions for billions of dollars in CHIPS Act funding, sources told Bloomberg, and the companies could be notified of the final awards soon.

The binding agreements, which were announced as tentative deals earlier this year, come as the Biden administration is racing to get the grants and loans out the door before its term ends in January 2025.

The final award amounts for the two companies are roughly in line with the tentative deals. The preliminary deal for TSMC (TSM) included $6.6B in grants and $5B in loans to support construction of three chip factories in Phoenix.

GlobalFoundries’ (GFS) package was for $1.5B in grants and another $1.6B in loans to support a new plant in New York and the expansion of existing facilities.

The CHIPS Act provides for $39B in grants, billions more in loans and 25% tax credits to boost domestic chip manufacturing and reduce reliance on Asia. More than 20 companies are in line for the government funding.

There’s reportedly about $3B left for preliminary agreements, meaning some funding may be finalized after Donald Trump takes office.

Biden administration officials are rushing to finalize the grants after Trump’s recent criticism of the CHIPS Act, which he said “is so bad.” House Speaker Mike Johnson last week said Republicans would “probably” try to repeal the law, but later said they would “streamline” it.