TSMC snags $6.6 billion in CHIPS Act funding to open three factories in Arizona

President Biden to semiconductor manufacturers. White House Taiwan Semiconductor Manufacturing Company (TSMC) is receiving a $6.6 billion grant to build three manufacturing plants in Phoenix, Arizona. This is in addition to nearly $5 billion in state loans.

As part of that deal, TSMC agreed to increase its planned investment in Arizona by $25 billion to $65 billion. Company By 2030, one-third will be built in the state. The White House says it’s the largest foreign direct investment in Arizona’s history and will bring 6,000 high-paying tech jobs and 20,000 construction jobs to the state.

One of the great things about these factories is that they will allow TSMC to complete all aspects of the chip manufacturing process on US soil, including advanced packaging. I’m not talking about removing a box and warranty information around the chip. In this context, packaging refers to the arrangement of various components to create the final product, while adding power, inputs, and outputs. As it stands now, even components made in America and then sent back out into the world for final sale. These Arizona factories will finally put an end to all this jet-setting.

Once all three factories are humming, they will produce tens of millions of chips to power products like smartphones, autonomous vehicles and, of course, AI data center servers. Future iPhones and Macs will use 4nm and 3nm chips made in Phoenix factories thanks to a partnership with Apple. TSMC already has with the first two factories, but according to the current plan, the first fab will be fully operational next year, the second factory in 2028 and the third factory by 2030.

The White House says this investment, along with other CHIPS Act grants and loans, will make the United States a global chip-making powerhouse. The federal government suggests the United States will produce 20 percent of the world’s advanced chips by 2030.

“America invented these chips, but over time we’ve gone from producing about 40 percent of the world’s capacity to closer to 10 percent, and none of the most advanced chips have exposed us to significant economic and national security vulnerabilities,” President Biden said.

One of the main goals of the CHIPS Act is to attract global chip makers to set up on US soil, and it seems to be working. Last week, Samsung announced that it would Up to $44 billion, with ambitious expansion plans. Multinational semiconductor company GlobalFoundries To help pay for a new manufacturing facility in New York that will produce chips for the automotive, aerospace, defense and artificial intelligence industries. Recently Intel To continue various operations in the United States, he stole up to 8.5 billion dollars.

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