TSMC Securing $6.6 Billion in Additional Federal Funding, Plans to Construct Third Semiconductor Factory in Phoenix

Officials announced this week that the Biden administration has approved a $6.6 billion funding for the Taiwan Semiconductor Manufacturing Company to aid in its growth in Phoenix.

According to TSMC, they plan to construct a new facility in Phoenix by the end of the decade. This facility, commonly known as a “fab,” is used for manufacturing semiconductor chips that are utilized in various technologies such as smartphones, cars, satellites, and defense systems.

In a statement made by President Joe Biden, America was the originator of these chips. However, as time passed, our production decreased significantly from being responsible for 40% of the world’s capacity to only 10%. According to him, this made the U.S. vulnerable to both economic and national security risks.

TSMC has reaffirmed its dedication to the United States and its decision to invest in Arizona reflects a larger narrative of American-made semiconductor production.

The CHIPS Act, which aims to promote the production of semiconductors within the country, is the source of the recent direct funding provided by the Biden administration.

TSMC’s third fab in Arizona will increase their total investment in the state to more than $65 billion. Along with this, they are currently developing two additional fabs in the northern area of Phoenix. The first one is expected to be up and running by the first half of 2025.

What are the potential benefits of the new TSMC facility for Phoenix?

The long-term economic prospects of the Valley will greatly benefit from this announcement, according to Mayor Kate Gallego of Phoenix.

In a statement by Gallego declared the decision of TSMC to expand its operations to Phoenix was the biggest foreign direct investment in the history of the United States. She believes the announcement of CHIPS funding is also a record-breaking federal award for Arizona, further cementing its place in history.

According to Gallego, the impact of TSMC’s expansion and the government’s investment will extend far beyond the boundaries of our city. It will have a lasting effect on the development of our entire region, providing numerous well-paying job opportunities for families and driving substantial economic growth for years to come.

The Valley will see an increase in job opportunities with the addition of semiconductor facilities.

The initial terms for TSMC’s expanded facilities were announced by the Biden-Harris administration, as specified by the U.S. Department of Commerce. These terms outline the specific jobs that will be brought to the region.
-Approximately 6,000 employment opportunities in the manufacturing sector
-More than 20,000 distinct job positions in the field of construction
-Tens of thousands of additional job opportunities created indirectly

According to recent reports, Intel is expected to receive a substantial amount of funding through the CHIPS Act. The company was granted $8.5 billion in funding and an additional $11 billion in loans by the White House last month, prior to President Biden’s visit to Chandler.

During his visit to Intel’s Chandler campus last month, Biden announced that the increased funding would result in the creation of 30,000 new jobs in both manufacturing and construction.