Taiwan Semi will receive direct finance for its Arizona factory worth up to $6.6 billion

The top semiconductor maker in the world, TSMC, and the US Department of Commerce have struck a significant deal that would allow TSMC Arizona, a subsidiary, to receive up to $6.6 billion in funding under the CHIPS and Science Act.

This agreement is a major step forward for the company's ambitious US development ambitions, which include building a third fabrication factory at its Arizona location to meet the growing demand from customers for cutting-edge chips.

TSMC has already invested over $65 billion in Phoenix, Arizona, with the construction of a third factory. This is the greatest foreign direct investment in Arizonan history and in a U.S. greenfield project.

“Several of the top technological businesses in the world are among our U.S. customers, and our U.S. operations enable us to provide them with superior assistance. Additionally, our U.S. operations will increase our capacity to lead future semiconductor technological developments”, stated Mark Liu, Chairman of TSMC.

It is anticipated that the building of three cutting-edge fabs in Arizona would create over 20,000 construction employees, 6,000 high-tech jobs directly, and many indirect jobs. These jobs will have a substantial impact on the competitiveness and health of the U.S. semiconductor ecosystem.

With 4nm technology, the first Arizona fab is expected to start up in the first half of 2025. The second fab will use the ground-breaking 2nm process technology in 2028.

With cleanroom areas twice as large as typical logic fabs, the third fab is expected to start producing chips utilising 2nm or more advanced technology by the end of the decade, demonstrating TSMC's commitment to driving the future of semiconductor production.

(Sources: investing.com, reuters.com)