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TSMC Arizona Secures Record $6.6B Federal Investment for Advanced Chip Manufacturing

The world’s leading semiconductor maker joins forces with the U.S. government to build three TSMC Arizona manufacturing plants in Phoenix.
The world’s leading semiconductor maker joins forces with the U.S. government to build three TSMC Arizona manufacturing plants in Phoenix.

On Nov. 15, 2024, the U.S. Department of Commerce announced a $6.6 billion grant for TSMC Arizona. The investment will increase the United States’ production of semiconductor chips, with a focus on crafting the most advanced chips in the world. The agreement comes as part of the CHIPS and Science Act, a bipartisan bill that funds and facilitates historic investments in innovative ideas and technologies that will restore the nation’s place in the semiconductor industry.


TSMC Arizona will use the funds to continue building three leading-edge semiconductor production facilities, or fabrications, in northern Phoenix. It will invest more than $65 billion in the city, and construction on the final plant is slated to wrap up by 2030. The fabs are expected to employ 6,000 people when they are running at full capacity. And an economic analysis conducted by the Greater Phoenix Economic Council found that this $65 billion investment will lead to the creation of 20,000-plus unique construction jobs. The historic grant represents the largest-ever foreign direct investment in a greenfield project in the United States. It also includes up to $5 billion in loans for TSMC Arizona, a subsidiary of Taiwan Semiconductor Manufacturing Company.


TSMC Arizona’s new facilities are an investment in America’s computing infrastructure and power, as the nation seeks to stake its claim in the semiconductor space. “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 — from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence,” President Joe Biden said in the announcement. “Today’s announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS and Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country.”


A full century after the technology was invented within the nation’s borders, the Biden administration has made reestablishing the United States as a crucial player in the semiconductor industry a priority. While it used to produce about 40% of the world’s supply of semiconductors, that percentage has dropped to just 10%. TSMC Arizona is changing that.


“Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” says TSMC chairman and CEO Dr. C.C. Wei. “TSMC appreciates the continued collaboration with customers, partners, local communities, and the U.S. government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.”


Producing More Semiconductors


When its first fabrication plant begins volume production in early 2025, TSMC Arizona will be home to the most advanced chipmaking technology on U.S. soil. The chips produced there will strengthen the United States’ position on the global stage and help push technology forward. 


Sponsored
Sponsored

“The Biden-Harris administration’s investment in TSMC Arizona is a turning point for American innovation and manufacturing that will strengthen our economic and national security,” U.S. Secretary of Commerce Gina Raimondo said in the announcement. “Because of President Biden and Vice President Harris, the most advanced semiconductor technology on the planet will be made in America, creating thousands of jobs in the process.”


Since it was signed into law on Aug. 9, 2022, the CHIPS for America program has granted more than $10 billion to partners in 20 states. Total proposed funding tops $36 billion. That money supports the CHIPS and Science Act’s mission to strengthen American supply chains, manufacturing, and national security. It does that via investments in research and development, science and technology, and labor, with an emphasis on clean energy, quantum computing, artificial intelligence, and nanotechnology.

TSMC Arizona Leaps Ahead

TSMC manufactures more than 90% of the world’s most advanced logic chips, making it the world leader in semiconductor manufacturing. Back in 2020, it announced the creation of TSMC Arizona and an initial $12 billion commitment to building its first U.S.-located advanced fabrication plant in Phoenix. 

Just two years later, in December 2022, it welcomed the installation of the first of several pieces of complex chipmaking tools. At the same time, TSMC Arizona announced that it would build a second facility on the 1,129-acre lot, bringing its to-date investment up to $40 billion. Leadership also pledged to construct an on-site industrial water reclamation plant, which supports the company’s sustainability commitments via a goal to recycle 90% or more of the water it uses.

In February 2024, the company achieved a “topping off” construction milestone on its second fab, marking the completion of the physical steel and concrete structure. Two months later, TSMC Arizona announced that it would build a third fabrication plant to support its customers on the growing demand for computing intensive AI-applications. This increased the company’s overall investment to $65 billion in Arizona. It will be live in 2030.

At full capacity, the three TSMC Arizona fabs will be responsible for creating tens of millions of chips. Each will specialize in a different type of semiconductor chip. The first fab will employ the company’s N4 process to produce chips that are primarily used in smartphones. Opening in 2028, the second fab will use N3 and N2 process technology to produce chips used by the data centers that power AI. At publication, this is the industry’s most advanced semiconductor technology in production. The third fab, announced at the same time as the $6.6 billion grant, will manufacture A16 chips and chips that use 2nm and even more advanced future process technology by the decade’s end. These chips will improve performance and power consumption for the high-performance computing applications that use them.

TSMC Arizona is already seeing the benefit of this move. Early numbers show the output at the first fab is higher than TSMC facilities in Taiwan. And the company’s stock price reached a record high in October after it increased its revenue growth target for the year and outperformed its quarterly estimates. Its American partners are also benefiting.


“We are excited to have some of the world’s most advanced process

technology and manufacturing capacity for AWS’ next-generation semiconductor product designs available domestically with this new facility,” said Peter DeSantis, senior vice president of Amazon Web Services Utility Computing. “The readiness of TSMC’s Arizona fab

enables us to use U.S.-based manufacturing to continue to innovate and deliver high-performance products, services, and instances for our customers globally.”


Wei is glad TSMC Arizona can be of service to its partners. “This project is truly a testament to the grand alliance TSMC has formed with customers, suppliers, and partners to further our collaboration and unleash innovation,” said Wei. “I’m deeply honored.”

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The world’s leading semiconductor maker joins forces with the U.S. government to build three TSMC Arizona manufacturing plants in Phoenix.
The world’s leading semiconductor maker joins forces with the U.S. government to build three TSMC Arizona manufacturing plants in Phoenix.

On Nov. 15, 2024, the U.S. Department of Commerce announced a $6.6 billion grant for TSMC Arizona. The investment will increase the United States’ production of semiconductor chips, with a focus on crafting the most advanced chips in the world. The agreement comes as part of the CHIPS and Science Act, a bipartisan bill that funds and facilitates historic investments in innovative ideas and technologies that will restore the nation’s place in the semiconductor industry.


TSMC Arizona will use the funds to continue building three leading-edge semiconductor production facilities, or fabrications, in northern Phoenix. It will invest more than $65 billion in the city, and construction on the final plant is slated to wrap up by 2030. The fabs are expected to employ 6,000 people when they are running at full capacity. And an economic analysis conducted by the Greater Phoenix Economic Council found that this $65 billion investment will lead to the creation of 20,000-plus unique construction jobs. The historic grant represents the largest-ever foreign direct investment in a greenfield project in the United States. It also includes up to $5 billion in loans for TSMC Arizona, a subsidiary of Taiwan Semiconductor Manufacturing Company.


TSMC Arizona’s new facilities are an investment in America’s computing infrastructure and power, as the nation seeks to stake its claim in the semiconductor space. “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 — from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence,” President Joe Biden said in the announcement. “Today’s announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS and Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country.”


A full century after the technology was invented within the nation’s borders, the Biden administration has made reestablishing the United States as a crucial player in the semiconductor industry a priority. While it used to produce about 40% of the world’s supply of semiconductors, that percentage has dropped to just 10%. TSMC Arizona is changing that.


“Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” says TSMC chairman and CEO Dr. C.C. Wei. “TSMC appreciates the continued collaboration with customers, partners, local communities, and the U.S. government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.”


Producing More Semiconductors


When its first fabrication plant begins volume production in early 2025, TSMC Arizona will be home to the most advanced chipmaking technology on U.S. soil. The chips produced there will strengthen the United States’ position on the global stage and help push technology forward. 


Sponsored
Sponsored

“The Biden-Harris administration’s investment in TSMC Arizona is a turning point for American innovation and manufacturing that will strengthen our economic and national security,” U.S. Secretary of Commerce Gina Raimondo said in the announcement. “Because of President Biden and Vice President Harris, the most advanced semiconductor technology on the planet will be made in America, creating thousands of jobs in the process.”


Since it was signed into law on Aug. 9, 2022, the CHIPS for America program has granted more than $10 billion to partners in 20 states. Total proposed funding tops $36 billion. That money supports the CHIPS and Science Act’s mission to strengthen American supply chains, manufacturing, and national security. It does that via investments in research and development, science and technology, and labor, with an emphasis on clean energy, quantum computing, artificial intelligence, and nanotechnology.

TSMC Arizona Leaps Ahead

TSMC manufactures more than 90% of the world’s most advanced logic chips, making it the world leader in semiconductor manufacturing. Back in 2020, it announced the creation of TSMC Arizona and an initial $12 billion commitment to building its first U.S.-located advanced fabrication plant in Phoenix. 

Just two years later, in December 2022, it welcomed the installation of the first of several pieces of complex chipmaking tools. At the same time, TSMC Arizona announced that it would build a second facility on the 1,129-acre lot, bringing its to-date investment up to $40 billion. Leadership also pledged to construct an on-site industrial water reclamation plant, which supports the company’s sustainability commitments via a goal to recycle 90% or more of the water it uses.

In February 2024, the company achieved a “topping off” construction milestone on its second fab, marking the completion of the physical steel and concrete structure. Two months later, TSMC Arizona announced that it would build a third fabrication plant to support its customers on the growing demand for computing intensive AI-applications. This increased the company’s overall investment to $65 billion in Arizona. It will be live in 2030.

At full capacity, the three TSMC Arizona fabs will be responsible for creating tens of millions of chips. Each will specialize in a different type of semiconductor chip. The first fab will employ the company’s N4 process to produce chips that are primarily used in smartphones. Opening in 2028, the second fab will use N3 and N2 process technology to produce chips used by the data centers that power AI. At publication, this is the industry’s most advanced semiconductor technology in production. The third fab, announced at the same time as the $6.6 billion grant, will manufacture A16 chips and chips that use 2nm and even more advanced future process technology by the decade’s end. These chips will improve performance and power consumption for the high-performance computing applications that use them.

TSMC Arizona is already seeing the benefit of this move. Early numbers show the output at the first fab is higher than TSMC facilities in Taiwan. And the company’s stock price reached a record high in October after it increased its revenue growth target for the year and outperformed its quarterly estimates. Its American partners are also benefiting.


“We are excited to have some of the world’s most advanced process

technology and manufacturing capacity for AWS’ next-generation semiconductor product designs available domestically with this new facility,” said Peter DeSantis, senior vice president of Amazon Web Services Utility Computing. “The readiness of TSMC’s Arizona fab

enables us to use U.S.-based manufacturing to continue to innovate and deliver high-performance products, services, and instances for our customers globally.”


Wei is glad TSMC Arizona can be of service to its partners. “This project is truly a testament to the grand alliance TSMC has formed with customers, suppliers, and partners to further our collaboration and unleash innovation,” said Wei. “I’m deeply honored.”

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