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WASHINGTON, Jan 10 (Reuters) - Taiwan Semiconductor Manufacturing Co has initiated the production of advanced four-nanometer chips for U.S. clients in Arizona, according to Commerce Secretary Gina Raimondo. This marks a significant achievement in the semiconductor initiatives of the Biden administration.

In November, the Commerce Department finalized a $6.6 billion grant for TSMC's U.S. branch to facilitate semiconductor production in Phoenix, Arizona.

"We are now, for the first time ever in the history of our country, manufacturing cutting-edge four-nanometer chips on American soil, with American workers - achieving yields and quality comparable to Taiwan," Raimondo disclosed to Reuters in an interview, noting that production had commenced in recent weeks.

"This is a major development - unprecedented until now, unprecedented in our history. Many skeptics said it couldn't be done," Raimondo expressed regarding the undisclosed start of production.

A TSMC spokesperson, the world's largest contract chipmaker and a key supplier to Apple and Nvidia slated to report earnings next week, declined to comment on Friday.

In April, TSMC agreed to bolster its planned investment by $25 billion to reach $65 billion and construct a third fab in Arizona by 2030.

In 2022, Congress established a $52.7 billion subsidy program for semiconductor manufacturing and research. As part of the program, Commerce will specify fab locations in the United States.

Raimondo previously mentioned to Reuters that Commerce had to persuade TSMC to enhance its U.S. operations.

"It wasn't a spontaneous decision... We needed to convince TSMC to consider expansion," Raimondo articulated.

TSMC is set to unveil the most cutting-edge two-nanometer technology at its second Arizona fab, expected to commence production in 2028. Additionally, TSMC agreed to implement its top chip manufacturing technology known as "A16" in Arizona.

Furthermore, the Commerce-backed award to TSMC includes up to $5 billion in government loans at favorable rates.

Raimondo aspires for the U.S. to produce 20% of the world's most advanced logic chips by 2030, a substantial increase from the previous 0% prior to TSMC's Arizona operations.

In April, Commerce outlined that TSMC anticipates commencing high-volume production at its initial U.S. fab by the first half of 2025.

Last month, to support the funding of Amkor Technology's forthcoming $2 billion advanced semiconductor packaging facility in Arizona, which is projected to be the largest of its kind in the U.S.

Once fully operational, Amkor's Arizona facility will package and test millions of chips for autonomous vehicles, 5G/6G technology, and data centers. Apple is poised to become its primary and largest client, with chips manufactured at a neighboring TSMC facility.