TSMC Secures $11.6B in US Funding to Build Third Advanced Chip Plant in Arizona

TSMC Announces Third Arizona Chip Plant Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to open a third chip fabrication plant in Arizona, alongside the two already under construction. This new facility will produce 2nm chips, which are significantly more advanced than those from the other plants.

Background on TSMC's Arizona Expansion

The initial announcement of TSMC’s Arizona plants was seen as a major win for the US CHIPS Act, aimed at reducing dependence on China for advanced chip supplies and creating jobs. However, the first plant is only capable of producing larger process chips suitable for older devices, leading to delays and increased costs.

Financial Incentives

TSMC will receive $11.6 billion in grants and loans from the US government to support this expansion. This includes $6.6 billion in grants and up to $5 billion in loans. The total investment by TSMC is expected to exceed $65 billion, making it a significant boost for the US semiconductor industry.

Timeline and Impact

The third plant will begin production after the first two, which are scheduled to start operations in 2025 and 2028. This expansion aims to address supply chain issues and enhance the domestic production of critical technology.