The United States government announced today that the US Department of Commerce awarded TSMC Arizona – a subsidiary of Taiwan Semiconductor Manufacturing Company – up to $6.6 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.
The award follows the previously signed preliminary memorandum of terms, announced on April 8, 2024, and the completion of the Department’s due diligence. It will support the company’s planned investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona. The Department will disburse the funds based on TSMC Arizona’s completion of project milestones.
According to the US Administration, the final agreement with TSMC will spur $65 billion dollars of 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 the history of the United States,” said President Joe Biden in a press statement. “The first of TSMC’s three facilities is on track to fully open early next year, which means that, for the first time in decades, an American manufacturing plant will be producing the leading-edge chips used in our most advanced technologies,” he concluded.
The Department of Commerce expects that TSMC Arizona’s three fabs will manufacture “tens of millions” of leading-edge logic chips that will power products like 5G/6G smartphones, autonomous vehicles, and high-performance computing and AI applications.
