TSMC has kept details about the third facility’s production timeline and process node under wraps. The company’s massive investment in Arizona is expected to profoundly impact the local economy, creating 6,000 high-tech manufacturing jobs and over 20,000 construction positions. Moreover, $50 million has been earmarked for training local workers, which aligns with President Joe Biden’s goal of bolstering domestic manufacturing and technological independence. However, TSMC’s Arizona projects have encountered obstacles, including labor disputes and uncertainties regarding government support, resulting in delays for the second facility’s production timeline. Additionally, reports suggest that at least one TSMC supplier has abandoned plans to set up operations in Arizona due to workforce-related challenges.
US Backs TSMC’s $65B Arizona Investment with $11.6B Support Package
According to the latest report from Bloomberg, the US government under Joe Biden’s administration has announced plans to provide Taiwan Semiconductor Manufacturing Company (TSMC) with a substantial financial support package worth $11.6 billion. The package is composed of $6.6 billion in grants and up to $5 billion in loans. This represents the most significant financial assistance approved under the CHIPS and Science Act, a key initiative to resurrect the US chip industry. The funding will aid TSMC in establishing three cutting-edge semiconductor production facilities in Arizona, with the company’s total investment in the state expected to exceed an impressive $65 billion. TSMC’s multi-phase Arizona project will commence with the construction of a fab module near its existing Fab 21 facility. Production using 4 nm and 5 nm process nodes is slated to begin by early 2025. The second phase, scheduled for 2028, will focus on even more advanced 2 nm and 3 nm technologies.