A subsidiary of Taiwan Semiconductor Manufacturing Co. could receive up to $6.6 billion in direct funding through the CHIPS and Science Act as part of a non-binding preliminary memorandum of terms signed with the U.S. Department of Commerce.
TSMC Arizona plans to use the proposed direct funding to support the construction of three semiconductor fabs in Phoenix, the Commerce Department said Monday.
The company plans to invest more than $65 billion in the three fabs. The first fab will manufacture 4-nanometer FinFET process technologies and the second chip factory will produce 2nm nanosheet process technology. The third fab will build 2nm or more advanced process technologies.
TSMC Arizona expects to kick off high-volume production at the first fab by the first two quarters of 2025.
“The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing,” said Commerce Secretary Gina Raimondo.
“Thanks to President Biden’s leadership and TSMC’s continued investments in U.S. semiconductor manufacturing, this proposed funding would help make our supply chains more secure and create thousands of good-quality construction and manufacturing jobs for Arizonans,” added Raimondo.
Under the nonbinding preliminary memorandum of terms, the company could receive another $50 million in funding to build its semiconductor and construction workforce and about $5 billion in proposed loans from the CHIPS Program Office.
TSMC Arizona received support from the City of Phoenix to launch a Registered Apprenticeship program for semiconductor technicians.