The United States will provide up to USD 6.6 billion in direct funding to Taiwan Semiconductor Manufacturing Co. (TSMC) for advanced chip-making facilities in Arizona, as part of the CHIPS Act initiative. This agreement marks a major step in boosting the domestic semiconductor industry.
According to President Joe Biden, the final agreement will spur “USD 65 billion dollars of private investment to build three state-of-the-art facilities in Arizona,” with the first facility expected to be operational by early 2025.
This funding is part of the broader USD 36 billion CHIPS Act grant program, designed to support companies meeting key milestones. TSMC follows Polar Semiconductor as the second company to finalize an agreement under the program.
Commerce Secretary Gina Raimondo emphasized the strategic importance of chips manufacturing inside the country in addressing national security. “Currently, the United States does not produce any leading-edge chips domestically, and this is the first time we'll be able to say we will be making these leading-edge chips in the United States,” Raimondo said. “I want to remind everyone that these are the chips that run AI and quantum computing. These are the chips that are in sophisticated military equipment.”
Once fully functional, the three plants will produce tens of millions of advanced logic chips annually, powering innovations such as 5G/6G devices, autonomous vehicles, and AI technologies.
This initiative highlights the U.S. government’s commitment to reducing reliance on overseas chip production while strengthening the nation’s technological and economic resilience.
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