TSMC (TSM), the world's leading semiconductor manufacturer, has announced a major agreement with the U.S. Department of Commerce, securing up to $6.6 billion in funding under the CHIPS and Science Act for its subsidiary, TSMC Arizona.
This deal marks a significant step forward in the company's ambitious expansion in the United States, with plans to construct a third fabrication plant at its Arizona site to accommodate surging customer demand for advanced chips.
This third fab elevates TSMC's total investment in Phoenix, Arizona, to over $65 billion, representing the largest foreign direct investment in Arizona's history and in a U.S. greenfield project.
“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 Dr. 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. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
The construction of three state-of-the-art fabs in Arizona is expected to generate approximately 6,000 high-tech jobs directly and over 20,000 construction jobs, alongside numerous indirect jobs, significantly contributing to the U.S. semiconductor ecosystem's vitality and competitiveness.
The first Arizona fab is slated to commence operations in the first half of 2025 using 4nm technology, followed by the second fab in 2028 with the revolutionary 2nm process technology.
The third fab is projected to begin producing chips by the end of the decade using 2nm or more advanced technologies, each featuring cleanroom areas double the size of standard logic fabs, underscoring TSMC's commitment to leading the future of semiconductor manufacturing.