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TSMC will build third Arizona fab after winning $6.6B in CHIPS funding

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The TSMC facility in Phoenix, Arizona.

Enlarge / The TSMC facility in Phoenix, Arizona. (credit: The Washington Post / Contributor | The Washington Post)

The US Department of Commerce has proposed another round of CHIPS Act funding up to $6.6 billion for Taiwan Semiconductor Manufacturing Company (TSMC), which President Joe Biden hopes will "support the construction of leading-edge semiconductor manufacturing facilities right here in the United States."

With this award—which includes additional funding up to $5 billion in low-cost government loans—TSMC has agreed to increase funding in Arizona fabrication plants to $65 billion. That's the largest foreign direct investment in a new project in US history, the Commerce Department said, and it will fuel construction of TSMC's third Arizona fab.

According to Biden, "these facilities will manufacture the most advanced chips in the world," putting the US "on track to produce 20 percent of the world’s leading-edge semiconductors by 2030."

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