TSMC receives $6.6 billion from CHIPS Act and announces third fab in Arizona
TSMC Arizona has just signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. As part of the agreement, TSMC will receive $6.6 billion in direct funding made possible by the CHIPS and Science Act. Additionally, TSMC may receive up to $5 billion in loans from the U.S. government. The company also announced plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.
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Additionally, TSMC intends to open a third fab at TSMC Arizona. This most recent announcement will bring TSMC’s total capital expenditure for the Phoenix, Arizona site to more than $65 billion. All three Arizona fabs are expected to create 6,000 new jobs for the surrounding area. The newly announced fab will manufacture chips using 2nm or more advanced processes and will help meet increasing customer demand. Production at the third fab is expected to begin in 2029.
In a recent quote, TSMC Chairman Dr. Mark Liu said, “The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States. Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
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About the Author
Alexis GajewskiAlexis Gajewski
Senior Content Strategist
Alexis Gajewski is a manufacturing writer and editor with nearly 20 years of experience covering the people, practices, and technologies that keep industrial facilities running. For more than a decade, she served as Senior Content Strategist for Plant Services, creating content for plant managers, engineers, and maintenance professionals on a variety of industrial topics.
During her tenure, Alexis worked to develop the brand’s digital strategy and helped launch and produce Great Question: A Manufacturing Podcast. She also created The Lighter Side of Manufacturing, a weekly blog that explored the inventive and sometimes humorous side of the industry.
Alexis co-founded Influential Women in Manufacturing, a recognition program that honored 49 women in its first two years, earned an industry award for Best Product Launch, and received a proclamation from Illinois Governor JB Pritzker and a commendation from U.S. Senator Tammy Duckworth.
She also led newsroom operations and development at a large media company where she set editorial standards, developed training curriculum, and helped support AI adoption for more than 150 editors across 80+ brands spanning manufacturing, industrial processing, automation, and more.
Additionally, Alexis works as a freelance writer and editor, and her areas of interest include continuous improvement, the skilled workforce, and the role of emerging technology on the plant floor.
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