TSMC set to receive up to $6.6 billion in funding for Arizona plants

U.S. Secretary of Commerce Gina Raimondo testified during a House Science, Space and Technology Committee hearing in Washington, D.C. on September 19, 2023.
TSMC’s Arizona subsidiary is set to receive up to $6.6 billion in U.S. government funding under a preliminary agreement announced by the Joe Biden administration on Monday. The funding will support TSMC’s $65 billion investment in three fabrication plants in Phoenix, Arizona, according to the agreement.
The Taiwanese semiconductor company is also eligible for about $5 billion in proposed loans under the CHIPS Act.
Commerce Secretary Gina Raimondo called the agreement with TSMC “huge” and emphasized that it will bring advanced chip manufacturing to American soil. The funds will include $50 million for training and developing local talent in Arizona, with TSMC already creating over 25,000 jobs and attracting 14 semiconductor suppliers to the state.
The CHIPS Act, passed in August 2022, is a $53 billion package aimed at strengthening the U.S. chip industry to enhance economic competitiveness and national security.
The legislation gives incentives for companies to produce chips in the U.S. and restricts certain semiconductor manufacturing operations in countries deemed national security risks.
Raimondo praised TSMC’s investment in Arizona as evidence of strong chip leadership from the Biden administration and Congress. TSMC is a global leader in semiconductor fabrication and is expected to provide chips to companies like Apple and AMD from its Arizona facilities.
Other companies receiving funding under the CHIPS Act include GlobalFoundries, Microchip, BAE Systems, and Intel, which was awarded up to $8.5 billion in indirect funding and up to $11 billion in loans last month.

U.S. Secretary of Commerce Gina Raimondo testified at a House Science, Space, and Technology Committee hearing regarding the CHIPS and Science Act. The Biden administration announced a preliminary agreement to provide up to $6.6 billion in funding to TSMC’s Arizona subsidiary to support the construction of three fabrication plants. This is part of the CHIPS Act, which aims to strengthen the U.S. domestic chip industry and enhance national security. TSMC’s investment in Arizona is the largest foreign investment in the state’s history and is expected to create jobs and attract semiconductor suppliers. Other companies, such as GlobalFoundries, Microchip, BAE Systems, and Intel, have also received funding under the CHIPS Act.

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