The Biden administration announced a $6.6 billion subsidy for Taiwan Semiconductor Manufacturing Company (TSMC) to support its $65 billion investment in building three chip fabrication plants in Arizona. While the subsidy will reduce a significant fixed cost for TSMC and allow for geographic diversification, it is unlikely to greatly affect the stock. TSMC remains the leading third-party chip fab company and is expected to produce strong returns for investors regardless of where it produces its semiconductors.
Atlanta City Council has approved a $1 million program to provide residents with up to $2,000 in instant rebates for electric bicycles in an effort to reduce traffic congestion and greenhouse gas emissions. The program, administered by the Atlanta Regional Commission and Propel ATL, will prioritize income-qualified residents, offering a $1,500 rebate for a standard e-bike and $2,000 for a cargo e-bike. Non-income-qualified residents can still receive $500 for a standard e-bike and $1,000 for a cargo e-bike. The initiative aims to fund the purchase of 800 to 1,000 e-bikes and is part of the city's efforts to improve transportation infrastructure and promote sustainable mobility.
Toyota will receive an $853 million subsidy from the Japanese government to expand the production of electric vehicle batteries and become less dependent on Chinese-related supply chains. The automaker will use the money to develop the next generation of lithium-ion EV batteries which use bipolar lithium iron phosphate technology and have the potential to offer 20 percent more range in electric vehicles and cost around 40 percent less than the current generation lithium-ion batteries used in the Toyota bZ4X crossover. Toyota plans to launch 10 new BEVs by 2026 and will produce an all-new electric SUV in Kentucky starting in 2025, as well as investing $2.1 billion in a battery factory in North Carolina.
