U.S. Awards TSMC $6.6 Billion for Arizona Plants

The U.S. Department of Commerce has awarded Taiwan Semiconductor Manufacturing Company (TSMC) $6.6 billion in funding to support the establishment of three new semiconductor fabrication plants in Arizona as part of the CHIPS Incentives Program. This investment, totaling over $65 billion, is expected to generate approximately 6,000 direct manufacturing jobs and more than 20,000 construction jobs, while enhancing domestic semiconductor production capabilities. The agreement aims to reduce reliance on foreign supply chains, particularly in light of global competition in semiconductor manufacturing. Furthermore, TSMC will also receive up to $5 billion in loans under the CHIPS Act, with the first payment anticipated before year-end. The finalized grant is a critical step in President Biden's efforts to bolster U.S. economic security and fulfill his legislative agenda before the end of his term. Overall, the initiative marks a significant milestone in U.S. efforts to enhance its semiconductor industry amid rising global demand.