Department of Commerce and TSMC Reach Final Agreement, Securing Major Investment for Arizona’s Economy and National Security
PHOENIX—Today, the Department of Commerce announced it has finalized a $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC) from the CHIPS and Science Act to support the expansion of TSMC’s microchip manufacturing facilities in Phoenix, Arizona.
This award follows the previously announced preliminary agreement made in April and will also come with approximately $5 billion in loans to support the construction of TSMC’s three manufacturing facilities in Phoenix, further cementing Arizona's role as a global hub for microchip development, testing, manufacturing, and packaging.
TSMC is the world’s most advanced microchip manufacturer and a key supplier of microchips to leading technology companies globally. Arizona is home to TSMC’s U.S.-based manufacturing presence, where the company is currently constructing three microchip plants, with at-scale microchip production beginning early next year. The first plant will utilize the N4 process, producing the most advanced microchips ever made in the United States, while the second and third plants will manufacture 3nm and 2nm microchips, the most advanced chips in the world.
“It's exciting to see our economic vision – years in the making – finally coming to fruition. I’ve long said that no state in the country stood to benefit more from the CHIPS and Science Act than Arizona,” said Rep. Greg Stanton. “With this final agreement with TSMC firmly in place, we’re solidifying Arizona’s position as a global leader for state-of-the-art semiconductor manufacturing and creating thousands of good-paying jobs here at home.”
“With this final agreement in place with TSMC, Arizona is set to become one of the world’s key centers for leading-edge microchip manufacturing,” said Senator Mark Kelly. “For the first time, the advanced microchips that power America’s military and tech innovators will be made here at home. These investments through the CHIPS and Science Act have us on track to double America’s share of the global microchip market by 2030, strengthening national security, bringing supply chains back to the U.S., and creating tens of thousands of good paying jobs, many of which won’t require a four-year degree. This is not only a win for Arizona’s economy, but for our national security and our continued global leadership and competitiveness.”
“I’m proud that our bipartisan CHIPS and Science law led to today’s finalized $6.6 billion award for TSMC - making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing,” said Senator Kyrsten Sinema.
“Thanks to our bipartisan CHIPS and Science Act, Arizona continues to see historic investments in cutting-edge semiconductor manufacturing. Today’s finalized award for TSMC will create thousands of good-paying jobs and strengthen our national security,” said Rep. Ruben Gallego. “I’m excited to make this announcement and look forward to working with TSMC and state and local leaders to ensure its success.”