The U.S. Department of Commerce has awarded TSMC Arizona up to $6.6 billion in direct funding under the CHIPS Incentives Program to bolster domestic semiconductor production. The funding will support TSMC’s $65 billion investment in three advanced semiconductor fabrication facilities in Phoenix, Arizona. These fabs are designed to produce cutting-edge chips for applications such as artificial intelligence, 5G/6G networks, autonomous vehicles, and high-performance computing. The funds will be released incrementally as TSMC meets key milestones related to construction, production, and commercialization.
This initiative is part of a larger national effort to reduce reliance on foreign semiconductor production and strengthen U.S. technological and economic security. At full capacity, the Phoenix fabs are projected to produce millions of high-performance chips annually, including A16 semiconductors, the most advanced technology in TSMC’s portfolio. The project is expected to create approximately 6,000 direct manufacturing jobs and over 20,000 unique construction jobs. It marks the largest foreign direct investment in a greenfield project in U.S. history and highlights the Department of Commerce’s commitment to reshoring critical technologies.
TSMC Arizona will also benefit from up to $5 billion in proposed loans, authorized under the CHIPS and Science Act. These loans will complement direct funding to accelerate the development of the facilities. Early production at TSMC’s first Arizona fab, set to fully open next year, has already achieved yields comparable to similar facilities in Taiwan. The CHIPS Program Office will monitor the performance of the award through regular financial and programmatic reporting.
• Key Points:
• TSMC Arizona received up to $6.6 billion in CHIPS funding and $5 billion in proposed loans.
• The investment supports three state-of-the-art fabs in Phoenix, Arizona, with a total budget exceeding $65 billion.
• The facilities will produce advanced chips for AI, 5G/6G, autonomous vehicles, and other applications.
• Approximately 6,000 manufacturing jobs and 20,000 construction jobs are anticipated.
• The first fab is on track to open fully next year, producing leading-edge A16 semiconductors.
“Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” said TSMC Chairman and CEO Dr. C.C. Wei. “This agreement helps us accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.”
