Kelly and Arizona Leaders Celebrate Finalized $6.6 Billion CHIPS and Science Act Award to TSMC for Arizona Manufacturing Expansion

Department of Commerce and TSMC Reach Final Agreement, Securing Major Investment for Arizona’s Economy and National Security

Award is from the CHIPS and Science Act, which was negotiated by Arizona Senators Mark Kelly and Kyrsten Sinema to bring microchip manufacturing back to America, create jobs, and strengthen national security

Today, the Department of Commerce announced it has finalized a $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC) from the CHIPS and Science Act to support the expansion of TSMC’s microchip manufacturing facilities in Phoenix, Arizona. This award follows the previously announced preliminary agreement made in April and will also come with approximately $5 billion in loans to support the construction of TSMC’s three manufacturing facilities in Phoenix, further cementing Arizona’s role as a global hub for microchip development, testing, manufacturing, and packaging. 

The Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s most advanced microchip manufacturer and a key supplier of microchips to leading technology companies globally. Arizona is home to TSMC’s U.S.-based manufacturing presence, where the company is currently constructing three microchip plants, with at-scale microchip production beginning early next year. The first plant will utilize the N4 process, producing the most advanced microchips ever made in the United States, while the second and third plants will manufacture 3nm and 2nm microchips, the most advanced chips in the world. 

The construction of TSMC’s third fab brings the company’s total capital expenditure for its Phoenix sites to over $65 billion, marking the largest foreign direct investment in Arizona’s history. The three fabs are expected to create approximately 6,000 good-paying manufacturing jobs and generate more than 20,000 construction jobs. As a part of today’s award, TSMC is committing to providing affordable child-care for their employees and investing in state-of-the-art water recycling technologies. The award also restricts TSMC’s ability to make leading-edge investments in China. 

“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 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.” 

“I’m proud that our bipartisan CHIPS and Science law led to today’s finalized $6.6 billion award for TSMC – making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing,” said Sinema. 

“The finalization of this historic agreement with TSMC further solidifies Arizona’s place as a leader in the American manufacturing resurgence,” said Governor Katie 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.” 

“Thanks to our bipartisan CHIPS and Science Act, Arizona continues to see historic investments in cutting-edge semiconductor manufacturing. Today’s finalized award for TSMC will create thousands of good-paying jobs and strengthen our national security,” said Rep. Ruben Gallego. “I’m excited to make this announcement and look forward to working with TSMC and state and local leaders to ensure its success.” 

“It’s exciting to see our economic vision – years in the making – finally coming to fruition. I’ve long said that no state in the country stood to benefit more from the CHIPS and Science Act than Arizona,” said Rep. Greg Stanton. “With this final agreement with TSMC firmly in place, we’re solidifying Arizona’s position as a global leader for state-of-the-art semiconductor manufacturing and creating thousands of good-paying jobs here at home.”
  

“Today’s announcement is a huge milestone for the City of Phoenix and the entire country. TSMC’s investment in our community will create thousands of great-paying jobs for our residents, boost our local and regional economies, and help secure a critical supply chain of the advanced technology that powers our phones, cars, and so much more. Thanks to the work of Senator Kelly and members of Arizona’s Congressional delegation, the CHIPS Law will advance major technological breakthroughs on U.S. soil and leave generational impacts on Phoenix,” said Phoenix Mayor, Kate Gallego.  

Background:  

Kelly and Sinema worked for nearly two years to negotiate and champion the CHIPS and Science Act, which includes Kelly’s $52 billion plan to boost domestic microchip manufacturing. Thanks to their leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging. While this is the first final award through the CHIPS and Science Act, Commerce has announced preliminary agreements with other microchip companies to expand production in Arizona, including Intel and Amkor.  

Last month, the President signed into law Kelly’s bipartisan bill, the Building Chips in America Act, which will streamline federal permitting processes for microchip manufacturing projects while maintaining bedrock protections for clean air and clean water. 

Since the passage of the CHIPS and Science Act, more than $102 billion in private investment from more than 40 semiconductor industry projects have been announced in Arizona.