In April, the U.S. Department of Commerce said announced $6.6 billion in direct funding for TSMC under the U.S. CHIPS and Science Act. The grant has now been finalized and includes an additional $5 billion in government loans, which will help expand TSMC’s semiconductor production in Phoenix, Arizona. This is the first major binding contract in the CHIPS and Science program after its launch in 2022.
TSMC semiconductor manufacturing plant in Phoenix, Arizona
Under the agreement, government funds will be distributed to TSMC based on project milestones, with the first $1 billion expected to be transferred before the end of this year.
Today’s final agreement with TSMC – the world’s leading manufacturer of advanced semiconductors – will spur $65 billion in private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade. This is the largest foreign direct investment in a greenfield project in United States history.
The first of TSMC’s three facilities is on track to fully open early next year, meaning that for the first time in decades, a U.S. factory will produce the most advanced chips used in our most advanced technologies – from our smartphones to autonomous computers. vehicles, to the data centers that power artificial intelligence. – US President Joe Biden
The Taiwanese semiconductor contract manufacturer has agreed to expand its investments in its Arizona factories to $65 billion, representing the highest foreign direct investment as a project in U.S. history.
According to previous reports, TSMC plans to produce 4nm chips in Arizona next year, followed by 3nm chips in 2028 using the N2 and A16 nanosheet process technologies. The chipset maker also wants to open a third semiconductor factory in Arizona by 2030, which will produce 2nm chips.