TSMC Arizona and U.S. Department of Commerce Announce up to US$6.6 Billion in Proposed CHIPS Act Direct Funding, the Company Plans Third Leading-Edge Fab in Phoenix

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Third fab will produce the most advanced leading-edge semiconductors in the U.S., bringing TSMC's total investment in Arizona to over US$65 Billion

www.tsmc.com/english, Apr. 08, 2024 – 

PHOENIX, Arizona, Apr. 8, 2024 – TSMC (TWSE: 2330, NYSE: TSM) today announced that the U.S. Department of Commerce and TSMC Arizona have signed a non-binding preliminary memorandum of terms (PMT) for up to US$6.6 billion in direct funding under the CHIPS and Science Act. TSMC also announced plans to build a third fab at TSMC Arizona to meet strong customer demand leveraging the most advanced semiconductor process technology in the United States.

As the company makes progress in completing its first fab and continues construction of its second fab at its Arizona subsidiary, the third fab brings TSMC's total capital expenditure for the Phoenix, Arizona site to more than US$65 billion, making the site the largest foreign direct investment in Arizona history, and the largest foreign direct investments in a greenfield project in U.S. history.

"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," said TSMC Chairman Dr. Mark Liu. "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."

"We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models," said TSMC CEO Dr. C.C. Wei. "They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success."

TSMC Arizona's three fabs are expected to create approximately 6,000 direct high-tech, high-wage jobs, building a workforce that will help to support a vibrant and competitive global semiconductor ecosystem that enables leading U.S. companies to gain access to domestically-manufactured, cutting-edge semiconductor products alongside a world-class semiconductor foundry. According to an analysis by the Greater Phoenix Economic Council, this increased investment in three fabs will create more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect supplier and consumer jobs.

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