The U.S. Department of Commerce has awarded TSMC Arizona Corporation, a subsidiary of Taiwan Semiconductor Manufacturing Company Limited, up to $6.6 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.
The award will support the company’s planned investment of more than $65 billion in three greenfield fabs in Phoenix, Arizona. The Department will disburse the funds based on TSMC Arizona’s completion of project milestones.
At full capacity, TSMC Arizona’s three fabs are expected to manufacture tens of millions of logic chips that will power products like 5G/6G smartphones, autonomous vehicles and high-performance computing and AI applications. Early production yields at the first TSMC plant in Arizona are on par with similar factories in Taiwan.
The advanced chips that TSMC manufactures for its customers, including its A16 technology, are the backbone of central processing units for servers in large-scale datacenters and of specialized graphics processing units used for machine learning. The investment is expected to create approximately 6,000 direct manufacturing jobs and more than 20,000 total unique construction jobs.
In addition to the direct funding of up to $6.6 billion, the CHIPS Program Office will provide up to $5 billion of proposed loans, which is part of the $75 billion in loan authority provided by the CHIPS and Science Act – to TSMC Arizona under the award.
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones and disburse loans to TSMC Arizona for amounts invested in capital expenditures. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.