TSMC will get $6.6 billion in CHIPS Act funding for its first major U.S. chipmaking hub

Taiwan Semiconductor Manufacturing Company (TSMC) at Hsinchu Science Park on September 16, 2022 in Hsinchu, Taiwan
Photo: Annabelle Chih (Getty Images)

Another major chipmaker is getting a share of the U.S. funding meant to bring advanced chipmaking to American soil.

Taiwan Semiconductor Manufacturing Company will get $6.6 billion in grants through the federal CHIPS and Science Act, as well as up to $5 billion in loans to support its first major U.S. chipmaking hub in Phoenix, the Biden administration said Monday. TSMC already has two chipmaking facilities in Arizona expected to begin production in 2025 and 2028, and will use some of the new funding to build a third facility, increasing the company’s investment from $40 million to $65 million, according to the Biden administration. The new facility will also create more than 25,000 jobs in construction and manufacturing, as well as indirect jobs.

“TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day,” President Joe Biden said in a statement.

“For the first time ever, we will be making at scale the most advanced semiconductor chips on the planet here in the United States of America, by the way, with American workers,” Commerce Secretary Gina Raimondo said in remarks reported by Bloomberg.

In March, Intel received $8.5 billion in direct government funding from the CHIPS Act, supporting its plans to invest over $100 billion in expanding chipmaking in the U.S. over the next five years.

This is a developing story and will be updated.

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Taiwan Semiconductor Manufacturing Company (TSMC) at Hsinchu Science Park on September 16, 2022 in Hsinchu, TaiwanPhoto: Annabelle Chih (Getty Images) Another major chipmaker is getting a share of the U.S. funding meant to bring advanced chipmaking to American soil. Taiwan Semiconductor Manufacturing Company will get $6.6 billion in grants through the federal CHIPS and Science…