The U.S. Department of Commerce announced Monday that the U.S. government will provide $11.6 billion in CHIPS Act funds to Taiwan Semiconductor to help the world’s largest chipmaker ramp up production of critical technology in Arizona.
The Taiwanese company, which produces 90% of the world’s ultra-advanced semiconductors and supplies tech giants such as Apple and Nvidia, is building a third factory in Phoenix as part of a $65 billion investment in its manufacturing footprint. Officials said they had agreed to do so.
TSMC’s first two factories are under construction and are scheduled to begin chip production in 2025 and 2028.
According to the Department of Commerce, this is the largest foreign direct investment in a new development project in U.S. history.
“These are the chips that underpin all artificial intelligence, the chips that are necessary components of the technology that we need to support our economy, but also, frankly, the military and national security apparatus of the 21st century. ,” said Secretary of Commerce Gina Raimondo. said in a statement.
The package is tied to the bipartisan CHIPS Act, comprehensive legislation aimed at boosting domestic production of advanced computer chips amid rising tensions with China. The $11.6 billion includes $6.6 billion in federal grants and up to $5 billion in low-cost loans.
This agreement represents a significant expansion of TSMC’s plans in Arizona. The company previously pledged to spend $40 billion to build a manufacturing base in the state.
“CHIPS and Science Act provide TSMC with the opportunity to make this unprecedented investment and provide foundry services for cutting-edge manufacturing technology in the United States.” TSMC Chairman Mark Liu said in a statement.
“Our U.S. operations will allow us to better support our U.S. customers, which include some of the world’s largest technology companies. will also expand.”
Apple CEO Tim Cook praised the announcement, saying the company is “proud to have played a key role in TSMC’s U.S. production expansion and is committed to continuing to invest in the U.S.” “We will continue to support a new era of advanced manufacturing in the United States.”
Nvidia President Jensen Huang said TSMC has been a “long-time partner of Nvidia since we invented GPUs and accelerated computing, and our ongoing innovations in artificial intelligence would not be possible without them.” It would have been possible.”
TMSC is one of the few companies slated to receive funding through the CHIPS Act.
Samsung reportedly plans to double its investment in computer chip production in Taylor, Texas, to $44 billion. wall street journal.
