The Biden administration has committed up to $6.6 billion to support Taiwan Semiconductor Manufacturing Co. (TSMC) in expanding its facilities in Arizona. This funding aims to ensure the production of advanced microchips domestically for the first time.
Commerce Secretary Gina Raimondo announced that the funding will allow TSMC to enhance its existing plans for two facilities in Phoenix and establish a third production hub. These microchips are crucial for various technologies, including artificial intelligence, and are essential for national security and military applications.
The funding is part of the CHIPS and Science Act, a $280 billion package signed into law by President Joe Biden to revitalize U.S. semiconductor manufacturing. The law seeks to strengthen U.S. military technology and manufacturing capabilities while reducing supply chain disruptions like those experienced during the pandemic-induced chip shortage in 2021.
TSMC, a leading producer of cutting-edge microchips globally, began construction of its first facility in Phoenix in 2021 and initiated work on a second hub last year. The company plans to invest a total of $40 billion in these projects, with the third facility expected to start chip production by the end of the decade, increasing the commitment to $65 billion.
The investments are projected to enable the U.S. to manufacture approximately 20% of the world's leading-edge chips by 2030, creating 6,000 manufacturing jobs, 20,000 construction jobs, and numerous indirect positions in chip-related industries in Arizona.
Additional incentives include $50 million for workforce training in Arizona and around $5 billion in proposed loans through the CHIPS and Science Act. The move is seen as a significant step towards bolstering America's semiconductor industry and reducing reliance on Asian suppliers.
TSMC's CEO expressed commitment to the success of the Arizona site, emphasizing the company's dedication to manufacturing leading-edge chips in the U.S. This development marks a pivotal moment for the semiconductor industry in America.
