The Biden-Harris Administration and the U.S. Department of Commerce have announced that Taiwan Semiconductor Manufacturing Company’s (TSMC) Arizona Corporation has been granted up to $6.6 billion in direct funding under the CHIPS Act. This funding will support TSMC’s planned investment of over $65 billion in three state-of-the-art chip manufacturing facilities in Phoenix, Arizona. The Department of Commerce will release the funds based on TSMC Arizona’s completion of project milestones.
President Joe Biden, reflecting on the significance of the agreement, highlighted the United States’ historical role in semiconductor innovation and manufacturing. He emphasized the need to reverse the decline in domestic chip production and restore America’s global leadership in this critical industry. The investment by TSMC, the world’s leading manufacturer of advanced semiconductors, is expected to create tens of thousands of jobs and contribute to the country’s economic and national security.
Senator Mark Kelly expressed his satisfaction with the finalized agreement, stating that Arizona is poised to become a key center for cutting-edge microchip manufacturing. He emphasized the importance of these investments in doubling America’s share of the global microchip market by 2030, strengthening national security, and bringing supply chains back to the United States. Senator Kyrsten Sinema echoed these sentiments, highlighting the transformative impact of the CHIPS and Science Act in creating strong careers, protecting national security, and reinforcing Arizona’s leadership in semiconductor manufacturing.
Governor Katie Hobbs praised the agreement, emphasizing its contribution to Arizona’s position as a leader in the American manufacturing resurgence. She highlighted the creation of thousands of well-paying jobs accessible to everyday Arizonans and the increased independence and overall strength of America’s chip production. Representatives Ruben Gallego and Greg Stanton also expressed their support for the investment, emphasizing the positive impact on job creation, national security, and Arizona’s global leadership in semiconductor manufacturing.
Phoenix Mayor Kate Gallego hailed the announcement as a significant milestone for the city and the entire country. She emphasized the creation of thousands of high-paying jobs, the boost to the local and regional economies, and the critical supply chain secured for advanced technology. Mayor Gallego credited the work of Senator Kelly and Arizona’s Congressional delegation in advancing major technological breakthroughs on U.S. soil.
The finalized agreement with TSMC represents the largest foreign direct investment in a greenfield project in U.S. history. The first facility is expected to open early next year, marking a significant step towards American manufacturing of leading-edge chips for advanced technologies such as smartphones, autonomous vehicles, and AI-powered data centers. This development is a critical milestone in the implementation of the bipartisan CHIPS and Science Act, ensuring continued progress and benefiting communities across the country.