U.S. Commerce Secretary Gina Raimondo testifies during the House Science, Space, and Technology Committee hearing titled “Chips on the Table: A Year-long Review of CHIPS and Science Act,” in the Rayburn Building in Washington, DC, on September 19. 2023.
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TSMCThe Arizona subsidiary is expected to receive up to $6.6 billion in funding from the U.S. government under a preliminary agreement announced Monday by Joe Biden’s administration.
The funding, under the U.S. CHIPS and Science Act, will support TSMC’s more than $65 billion investment in three advanced manufacturing plants in Phoenix, Arizona, according to the non-binding agreement.
The Taiwanese multinational semiconductor company is also eligible for approximately $5 billion in loans offered under the CHIPS Act.
U.S. Commerce Secretary Gina Raimondo said during a press briefing that the deal was “huge,” adding that the partnership with TSMC would bring “the manufacturing of the world’s most advanced chips to American soil.”
According to Raimondo, the funds will include $50 million to train and develop local talent in Arizona, with TSMC Arizona having already created more than 25,000 jobs and attracted 14 semiconductor suppliers to the state.
The CHIPS Act, passed in August 2022, is a nearly $53 billion package aimed at growing the U.S. domestic chip industry to boost the country’s economy and better compete with rivals such as China for national security purposes.
The legislation provides billions in incentives for companies to produce chips in the United States, provided they do not expand certain semiconductor manufacturing operations in China and other countries considered a risk to national security.
Commerce Secretary Raimondo on Monday praised TSMC’s investment in Arizona, the largest foreign investment of its kind in the state’s history, as evidence of the strong leadership of the Biden administration and the U.S. Congress when it comes to chips.
TSMC is the world’s leading semiconductor manufacturer and makes the vast majority of the world’s cutting-edge logic chips used in emerging technologies such as artificial intelligence. These are the Arizona factories that are expected to supply chips to customers including Apple and AMD.
Other companies that have received funding under the CHIPS Act include GlobalFoundries, MicrochipBAE Systems, as well as Intelwhich received up to $8.5 billion in indirect financing and up to $11 billion in loans last month.
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