TSMC Awarded $3.2 Billion CHIPS Act Grant for Arizona Chip Manufacturing Expansion

Taiwan Semiconductor Manufacturing Co. has received $3.2 billion in direct funding under the CHIPS and Science Act to expand its semiconductor manufacturing operations in Arizona. The grant supports the construction of advanced 3-nanometer chip fabrication facilities. The award represents one of the largest grants under the federal program aimed at onshoring critical semiconductor manufacturing capacity. TSMC already operates one fabrication plant in Arizona and is constructing a second facility. The new funding enables construction of a third facility focusing on the most advanced process nodes. The expansion is expected to create approximately 6,000 construction jobs and 4,000 permanent manufacturing positions. TSMC is the world's largest contract chip manufacturer, producing semiconductors for Apple, NVIDIA, AMD, and other major technology companies. The company has committed to investing $65 billion in its Arizona operations, making it one of the largest foreign direct investments in US manufacturing history. The CHIPS Act, passed in 2022, provides $52 billion in subsidies to boost domestic semiconductor production. The Biden administration has been distributing funds to companies including Intel, Samsung, and Micron as part of efforts to reduce reliance on Asian chip manufacturing.