The Biden-Harris Administration has secured a preliminary agreement with Taiwan Semiconductor Manufacturing Company Limited (TSMC) to bring semiconductor technology production to the heart of Arizona.
Under the terms of the preliminary memorandum, TSMC is poised to receive up to $6.6 billion (c.£5.2bn) in direct funding through the CHIPS and Science Act. This investment, combined with TSMC’s commitment of over $65bn (c.£51bn), will establish three state-of-the-art fabs in Phoenix, Arizona, dedicated to producing the most advanced semiconductors.
President Joe Biden expressed the Administration’s unwavering commitment to revitalising the semiconductor industry in the US, emphasising the pivotal role of these ‘tiny yet indispensable chips’ in powering modern technology. “Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems. America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to close to 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities,” stated President Biden.
The proposed investment is projected to create approximately 6,000 direct manufacturing jobs, along with tens of thousands of indirect jobs, bolstering Arizona’s economy and cementing the region as a hub for technological innovation. Furthermore, TSMC’s renewed commitment to the US reportedly underscores a broader narrative of semiconductor manufacturing ‘Made in America,’ aligning with President Biden’s vision of bolstering domestic production.
Secretary of commerce Gina Raimondo echoed this sentiment, emphasising the strategic significance of bringing advanced chip manufacturing capabilities to US shores. “The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing,” noted secretary Raimondo.
TSMC’s Chairman, Dr Mark Liu, hailed the proposed funding as an opportunity to propel technological innovation and strengthen the company’s partnerships with leading US technology firms. “Our US operations allow us to better support our US customers, which include several of the world’s leading technology companies. Our US operations will also expand our capability to trailblaze future advancements in semiconductor technology,” remarked Dr Liu.
Notably, TSMC’s Arizona fabs are slated to produce a suite of the most advanced process node technologies, including the 2nm nanosheet process technology. These chips are poised to power a myriad of next-generation devices, from 5G/6G smartphones to autonomous vehicles and AI datacentre servers.
