Kelly, Sinema, Lesko, Hobbs, Gallego Celebrate $6.6B CHIPS and Science Act Award to TSMC, Highlight Benefit for Arizona Economy and National Security
TSMC also announced it will construct third plant in Phoenix, bringing total Arizona investment to $65B
Kelly and Sinema were chief negotiators of the Chips and Science Act in 2022, historic legislation to bring semiconductor manufacturing back to the United States, create good-paying American jobs, and strengthen supply chains
Today, the Department of Commerce announced that the Taiwan Semiconductor Manufacturing Company (TSMC) will receive $6.6 billion in grants and approximately $5 billion in loans from the CHIPS and Science Act to support construction of microchip manufacturing facilities in Phoenix, Arizona. TSMC also announced that it is planning to build a third microchip plant in Phoenix, which will create thousands of jobs and bring its total investment in Arizona to $65 billion.
The 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.
Arizona is home to TSMC’s U.S.-based manufacturing presence, where they are currently constructing two microchip plants with a third planned. The first of those plants will use the N4 process, producing the most advanced microchips ever made in the United States. And the second and third plants will produce 3nm and 2nm microchips, making Arizona the emerging global hub for microchip development, testing, manufacturing, and packaging.
“It’s an exciting day for Arizona, where we are leading the way in bringing the most advanced microchip manufacturing back to America. This grant and TSMC’s commitment to increase their presence in our state are going to create thousands of great-paying jobs, many of which don’t require a four-year degree, and get more workers the skills they need to start these careers. This will also strengthen our national security by bringing critical technology supply chains back from overseas and reinforcing ties between the United States and Taiwan. Today’s exciting steps forward are the product of the hard work we did to pass the CHIPS Act and the hard work that Mayor Gallego and our state and local economic development leaders did to bring TSMC to Phoenix,” said Senator Kelly, a chief negotiator of the CHIPS and Science Act.
“Today’s TSMC investment—fueled by our bipartisan CHIPS and Science law—is making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing,” said Senator Sinema, a chief negotiator of the CHIPS and Science law and co-author of the bipartisan CHIPS for America Act.
“Over the past decade, the efforts to install the Taiwan Semiconductor Manufacturing Company (TSMC) in the Arizona desert have resulted in tremendous progress as this dream nears its reality. I am proud of the partnership of all involved with this project, and I am excited to see the economic boom this new manufacturing is certain to create in the northwest valley. This union between Arizona and TSMC will lead to a brighter future for our state and nation!” said Representative Lesko.
“Arizona is an international leader in the semiconductor industry, a testament to our strong and enduring relationship with TSMC. With this vital investment made possible by the CHIPS Act, this partnership will continue to thrive. We are at the forefront of our country’s economic future because of our high-skilled workforce and dynamic economic engine, and TSMC’s growth and investment right here in Arizona will continue to show the world that our state is the best place for businesses to invest. I want to thank ACA President Sandra Watson for her essential work cementing Arizona as the silicon desert and TSMC Chairman Mark Liu for his partnership with our state. Some of the world’s most advanced chips will be made here in Arizona at TSMC, and this investment underscores our commitment to innovation and technological leadership,” said Governor Hobbs.
“Today’s announcement is yet another important milestone for Phoenix as we fast become the hub of the nation’s semiconductor industry. Thanks to this funding, TSMC will be able to continue its expansion in our city, not only creating thousands of high-wage jobs, but also playing a vital role in bringing back American manufacturing of this critical technology. We wouldn’t be able to celebrate this huge news without the support of the Biden administration and the work of our Congressional delegation, business leaders, and education partners who helped advocate for and ultimately pass the CHIPS Act. This was truly a team effort, and I look forward to the positive impact this investment will have for generations to come,” 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. With new semiconductor plants being constructed in Maricopa County, Arizona workers are already feeling the impact of this historic law.
In June 2020, Sinema first introduced the CHIPS for America Actwith Senators John Cornyn (R-TX) and Mark Warner (D-VA) to bring semiconductor manufacturing back to the United States. The CHIPS and Science Act included the funding to make Sinema’s CHIPS in America Act operational. Sinema was instrumental in passing the bipartisan CHIPS and Science Act into law, partnering with Senator Todd Young (R-IN) to prevent the legislation from partisan collapse on the Senate floor.
Since the passage of the CHIPS and Science Act, more than $60 billion in private investment for 38 semiconductor industry projects have been announced in Arizona.
