Industry News

TSMC receives $6.6 billion from CHIPS Act and announces third fab in Arizona

April 8, 2024

Additionally, TSMC may receive up to $5 billion in loans from the U.S. government.

TSMC Arizona has just signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. As part of the agreement, TSMC will receive $6.6 billion in direct funding made possible by the CHIPS and Science Act. Additionally, TSMC may receive up to $5 billion in loans from the U.S. government. The company also announced plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.

Additionally, TSMC intends to open a third fab at TSMC Arizona. This most recent announcement will bring TSMC’s total capital expenditure for the Phoenix, Arizona site to more than $65 billion. All three Arizona fabs are expected to create 6,000 new jobs for the surrounding area. The newly announced fab will manufacture chips using 2nm or more advanced processes and will help meet increasing customer demand. Production at the third fab is expected to begin in 2029.

In a recent quote, TSMC Chairman Dr. Mark Liu said, “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. Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”

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About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector.