TSMC Wins Big With $11.6B In US Funding For Arizona Chip Fabs

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The United States government has slowly but surely been distributing funds related to the CHIPS and Science Act, with TSMC set to be a recipient of $6.6 billion in grants and up to $5 billion in loans. The money will be used by the company to advance its planned facilities in Arizona. TSMC also announced plans to build out a third factory in the state, with its first two sites set to begin work in 2025 and 2028.

The third facility looks to be the most interesting, as TSMC plans on producing 2-nanometer chips there. US Commerce Secretary Gina Raimondo stated that “For the first time ever, we will be making at scale the most advanced semiconductor chips on the planet here in the United States of America.” Raimondo emphasized the importance of this development, as these chips are key for technologies that will benefit the military.

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TSMC's Mark Liu spoke about the agreement, saying “the proposed funding from the CHIPS and Science Act would provide TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States.” Part of the agreement includes $50 million to setup training programs for local workers needed to staff these new factories.

It hasn’t been smooth sailing for TSMC in Arizona, as these projects have been hit with several delays. With a changing global economic outlook and what TSMC claimed was sub-optimal government support being cited as reasons. Hopefully, this huge round of funding can get these plans back on track and prevent even more delays.