TSMC announces it has secured $1 trillion in funding from the U.S. government to build a third semiconductor factory in Arizona
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Taiwanese semiconductor foundry TSMC and the US Department of Commerce have announced that they have signed a preliminary memorandum of understanding (PMT) for up to $6.6 billion in direct funding under the CHIPS and SCIENCE Act (CHIPS Plus Act) to build TSMC's third semiconductor manufacturing plant in Arizona.
TSMC Arizona and US Department of Commerce Announce Up to US$6.6 Billion in Proposed CHIPS Act Direct Funding, Company Plans Third Leading-Edge Fab in Phoenix
https://pr.tsmc.com/english/news/3122
Biden-Harris Administration Announces Preliminary Terms with TSMC, Expanded Investment from Company to Bring World's Most Advanced Leading-Edge Technology to the US | US Department of Commerce
https://www.commerce.gov/news/press-releases/2024/04/biden-harris-administration-announces-preliminary-terms-tsmc-expanded
Statement from President Joe Biden on CHIPS and Science Act Preliminary Agreement with TSMC | The White House
https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/statement-from-president-joe-biden-on-chips-and-science-act-preliminary-agreement-with-tsmc/
TSMC wins $6.6 billion US subsidy for Arizona chip production | Reuters
https://www.reuters.com/technology/tsmc-wins-66-bln-us-subsidy-arizona-chip-production-2024-04-08/
In recent years, TSMC has been building overseas factories outside of Taiwan, and is currently building a semiconductor factory in Phoenix, Arizona, USA, as well as in Kumamoto Prefecture, Japan, where the first factory was completed in February 2024. The Japanese government has also announced that it will provide subsidies of up to $4.86 billion (approximately 732 billion yen) for the construction of a second factory.
Meanwhile, TSMC and the U.S. Department of Commerce signed a preliminary memorandum of understanding to provide up to $6.6 billion in direct funding under the CHIPS+ Act to build a third semiconductor manufacturing plant in Arizona. The CHIPS+ Act is a bill that invests in semiconductor manufacturing and research and development with the aim of promoting the semiconductor industry in the United States, and also provided funding to Intel in March 2024.
With the construction of the new factory, TSMC's total capital investment in Arizona will exceed $65 billion (approximately 9.9 trillion yen), making it the largest foreign direct investment in a greenfield project in the history of Arizona and the largest foreign direct investment in a greenfield project in the history of the United States.
TSMC claims that the three factories it will build in Arizona will create approximately 6,000 high-tech, high-wage direct jobs, provide major American companies with access to domestically produced semiconductor products, and generate more than 20,000 construction-related jobs and tens of thousands of indirect jobs.
TSMC explained that the first factory to be built in Arizona will manufacture chips using the 4nm process, the second factory will manufacture chips using the world's most advanced 2nm process using next-generation nanosheet transistors in addition to the already announced 3nm process, and the third factory announced this time will manufacture chips using more advanced processes than the 2nm process.
TSMC also claims to be committed to green manufacturing , and is committed to energy efficiency, water conservation, waste disposal, and air pollution prevention in its factories. The Arizona factory is designed based on the same global vision, and aims to achieve a 90% water recycling rate.
Construction of the first factory in Arizona began in 2021 , but in 2023, the start of production of 4nm chips was postponed to 2025 due to a 'shortage of skilled workers with specialized knowledge.' Production at the second factory is scheduled to begin in 2028, and at the third factory by 2034.
TSMC's Arizona factory aiming to manufacture iPhones and AI chips postpones start of production due to 'labor shortage' - GIGAZINE
Regarding this preliminary memorandum, US President Joe Biden commented, 'Semiconductors smaller than a fingertip power everything from smartphones to cars, satellites and weapons systems. These chips were developed in the United States, but over time, our production capacity, which once accounted for nearly 40% of the world's production capacity, has fallen to just over 10%, and we are no longer producing any cutting-edge chips, facing significant economic and national security vulnerabilities. I am determined to turn this around, and thanks to the CHIPS Plus Act, a key part of my US investment plan, semiconductor manufacturing and jobs are recovering.' He argues that manufacturing cutting-edge semiconductors in the United States is important not only for the economy but also for national security.
Additionally, U.S. Commerce Secretary Gina Lemond said, 'The cutting-edge semiconductors manufactured here in Arizona are the foundation of technologies that will define our global economy and national security in the 21st century, including AI and high-performance computing. Thanks to President Biden's leadership and TSMC's continued investment in American semiconductor manufacturing, this proposed funding will help make our supply chain more secure and create tens of thousands of good construction and manufacturing jobs for Arizonans.'
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