PHOENIX — The Department of Commerce announced Friday that it has finalized a $6.6 billion award to the Taiwan Semiconductor Manufacturing Company.
Officials said the award is from the CHIPS and Science Act and is meant to support the expansion of TSMC’s microchip manufacturing facilities in Phoenix.
This announcement of the award comes after April's preliminary agreement and will also come with nearly $5 billion in loans to assist in the construction of TSMC's three Valley facilities.
TSMC manufactures the world’s most advanced microchips and is a key supplier of microchips to leading technology companies. Arizona is the home to the company's U.S.-based manufacturing presence and is currently building three plants, with production hoping to start in early 2025.
Arizona officials shared their thoughts about the news Friday via a news release.
“With this final agreement in place with TSMC, Arizona is set to become one of the world’s key centers for leading-edge microchip manufacturing,” said Senator Mark Kelly. “For the first time, the advanced microchips that power America’s military and tech innovators will be made here at home. These investments through the CHIPS and Science Act have us on track to double America’s share of the global microchip market by 2030, strengthening national security, bringing supply chains back to the U.S., and creating tens of thousands of good paying jobs, many of which won’t require a four-year degree. This is not only a win for Arizona’s economy, but for our national security and our continued global leadership and competitiveness.”
Arizona Governor Katie Hobbs also offered her insight into the award.
“The finalization of this historic agreement with TSMC further solidifies Arizona’s place as a leader in the American manufacturing resurgence,” said Hobbs. “Made in America means made in Arizona, and these investments will create thousands of good-paying, family-supporting jobs that are accessible to everyday Arizonans. The chips that will be made here will power our entire country, from smartphones to autonomous vehicles to cutting-edge aerospace and defense equipment, all while increasing America’s overall independence. I am grateful to Senator Kelly and Senator Sinema for their role in negotiating the CHIPS and Science Act, and I look forward to continuing our work to keep Arizonans at the center of our nation’s future.”
According to officials, more than $102 billion in private investment from more than 40 semiconductor industry projects have been announced in Arizona since the passage of the CHIPS and Science Act.
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