TSMC and US Gov’t Propose $6.6B for Arizona Chip Plant

TSMC & US Govt. Seal $6.6B Deal; 3rd Fab in Arizona Planned TSMC (TWSE: 2330, NYSE: TSM) and the U.S. Department of Commerce have inked a non-binding preliminary memorandum for up to $6.6 billion in direct funding under the CHIPS and Science Act. This investment will fuel the construction of TSMC’s third fab in Arizona to meet soaring demand for cutting-edge semiconductor technology in the United States.

With the first fab nearing completion and the second one under construction, TSMC’s commitment in Arizona surpasses $65 billion, marking it as the largest foreign direct investment in the state’s history and one of the biggest in U.S. greenfield projects.

Chairman Dr. Mark Liu emphasized the opportunity provided by the CHIPS and Science Act, enabling TSMC to enhance its foundry services with state-of-the-art manufacturing technologies within the United States. CEO Dr. C.C. Wei expressed enthusiasm for supporting leading innovators in mobile, artificial intelligence, and high-performance computing through TSMC’s expanded capacity in Arizona.

The three fabs are projected to generate around 6,000 high-tech jobs, contributing to a thriving semiconductor ecosystem in the United States. Additionally, the investment is estimated to create over 20,000 construction jobs and numerous indirect employment opportunities.

TSMC’s commitment to environmental sustainability is reflected in its green manufacturing practices, aiming for a 90% water recycling rate and striving for “near zero liquid discharge” through innovative water reclamation efforts.

In addition to the proposed direct funding, TSMC plans to apply for U.S. Treasury Department Investment Tax Credits and remains committed to its long-term financial goals.

Industry leaders such as AMD, Apple, and NVIDIA have applauded the partnership, emphasizing the importance of a resilient semiconductor supply chain and the potential for American innovation to thrive with TSMC’s expanded presence in the United States.

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