Commerce Announces $6.6 Billion in Chips Funding for TSMC

The Commerce Department will award up to $6.6 billion in funding to Taiwan Semiconductor Manufacturing Company under the Chips Act to help the leading semiconductor manufacturing firm build fabs in Arizona, the agency announced April 8. Commerce said it signed a “non-binding preliminary memorandum of terms” with TSMC for the funding, which will help it build two previously announced fabs in Phoenix (see 2005150033) and an additional third fab before the end of the decade.

Commerce said the U.S. is “on track” to produce about 20% of the world’s leading-edge chips by 2030. “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,” Commerce Secretary Gina Raimondo said. TSMC Chairman Mark Liu said the new facilities will allow the company “to better support our U.S. customers, which include several of the world’s leading technology companies,” and “expand our capability to trailblaze future advancements in semiconductor technology.”

Semiconductor Industry Association CEO John Neuffer called the funding announcement a “big win” for the American chip industry. “CHIPS remains on track for great success,” he said, “and we look forward to continuing to work with leaders in government and industry to ensure it delivers maximum benefits to America’s economic and technological leadership.”