TSMC Arizona Corp. will receive up to $6.6 billion in direct funding from the U.S. Department of Commerce under the CHIPS and Science Act, with plans to build a third semiconductor fabrication plant in Phoenix. The Department of Commerce calls this a significant step in providing U.S. manufacturers a reliable domestic supply of semiconductors.
“America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to close to 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities,” President Joe Biden said in a statement. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
According to TSMC Arizona, a subsidiary of Taiwan Semiconductor Manufacturing Co., the plants will give its U.S. customers, such as Apple and NVIDIA, access to domestically manufactured semiconductor products.
With two fabrication plants already in development, the third would bring TSMC’s total capital expenditure in Phoenix to more than $65 billion, the company says. TSMC Arizona’s first plant is expected to begin production in the first half of 2025, with the second following in 2028 and the third by the end of the decade.
“The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Mark Liu. “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies.”
TSMC’s investment in the region will create “approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs in this decade,” the Department of Commerce said in a statement.
In addition to the proposed $6.6 billion, TSMC is also eligible for up to $5 billion in loans. The company says it plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.
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