Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) has announced a partnership with the U.S. Department of Commerce, securing up to $6.6 billion in direct funding under the CHIPS and Science Act. This funding will support the construction of a third semiconductor fabrication plant (fab) in Phoenix, Arizona, as part of TSMC Arizona's expansion. The new fab will utilize the most advanced semiconductor process technology in the U.S. With the addition of the third fab, TSMC's total investment in the Arizona site will exceed $65 billion, marking the largest foreign direct investment in Arizona and in a U.S. greenfield project. TSMC's Chairman, Dr. Mark Liu, emphasized the opportunity to provide advanced manufacturing technologies in the U.S., while...Show More

Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) has announced a partnership with the U.S. Department of Commerce, securing up to $6.6 billion in direct funding under the CHIPS and Science Act. This funding will support the construction of a third semiconductor fabrication plant (fab) in Phoenix, Arizona, as part of TSMC Arizona's expansion. The new fab will utilize the most advanced semiconductor process technology in the U.S. With the addition of the third fab, TSMC's total investment in the Arizona site will exceed $65 billion, marking the largest foreign direct investment in Arizona and in a U.S. greenfield project. TSMC's Chairman, Dr. Mark Liu, emphasized the opportunity to provide advanced manufacturing technologies in the U.S., while CEO Dr. C.C. Wei highlighted the company's commitment to meeting customer demand for advanced silicon. The expansion is expected to create approximately 6,000 direct high-tech jobs and support a competitive global semiconductor ecosystem. The first Arizona fab is set to begin production in the first half of 2025 with 4nm technology, followed by the second fab with 2nm and 3nm technologies in 2028, and the third fab by the end of the decade. TSMC is also focused on green manufacturing, aiming for a 90% water recycling rate and designing an industrial water reclamation plant for near zero liquid discharge. Additionally, TSMC plans to apply for U.S. Treasury Department Investment Tax Credits and may receive up to $5 billion in loans. The company maintains its long-term financial goals, including a 15-20% revenue CAGR, a gross margin of 53% or higher, and an ROE of 25% or higher. Customer remarks from AMD, Apple, and NVIDIA expressed strong support for TSMC's U.S. expansion.