TSMC will be manufacturing N2 in its second Phoenix fab and will be opening up a third factory in Phoenix with a total projected investment of $65B. Taiwan Semiconductor Manufacturing Company plans to build an additional factory and upgrade another planned facility in Phoenix with the federal grants.
TSMC to get $6.6B, manufacture N2 in Phoenix
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TSMC is getting 78% the money as intel while intel builds 1.67X more fabs in the US + an advanced packaging site. The US has it's national champion and their based in the based in Hsinchu (part of the mythical 51st state of the ROC) 
. Jokes aside this is super cool to see. I'm happy to see that TSMC isn't going to just abandon the full vision for Phoenix after the early stumbles like they did in Washington. Still looks like they are continuing the trend of being 2 nodes behind TSMC's best, but maybe we will get there eventually as the Taiwanese work force gets taped out further and Phoenix proves it's worth.
. Jokes aside this is super cool to see. I'm happy to see that TSMC isn't going to just abandon the full vision for Phoenix after the early stumbles like they did in Washington. Still looks like they are continuing the trend of being 2 nodes behind TSMC's best, but maybe we will get there eventually as the Taiwanese work force gets taped out further and Phoenix proves it's worth.
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I don’t think the announcement said anything about an advanced packaging site. Did I miss something?TSMC is getting 78% the money as intel while only building 1.67X more fabs in the US + an advanced packaging site. The US has it's national champion and their based in the based in Hsinchu (part of the mythical 51st state of the ROC)
TSMC isn't intel was the one who built an advanced packaging fab in the US. Thanks for pointing this out since the wording was terrible, I fixed the comment for clarity.
If the money was proportional to the total expenditure, (65B vs 100B), TSMC would be getting $5.5B. However, TSMC has a long track record of semiconductor manufacturing excellence that they can point towards to justify the money, even if it’s questionable if it can be transferred to the US given the difference in workforce quality between the US and Taiwan.TSMC is getting 78% the money as intel while intel builds 1.67X more fabs in the US + an advanced packaging site. The US has it's national champion and their based in the based in Hsinchu (part of the mythical 51st state of the ROC)
MKWVentures
Moderator
neither the 65B or the 100B is real. those are made up numbers.
TSMC, the leading silicon producer in the world is building factories in the US, this is great. Intel is building new factories in the US, this is great.
The boost to AZ is going to be amazing from all of this. I should have bought real estate in north phoenix LOL
It will be interesting to see how these two ACTUALLY ramp over the next 3 years.
what will the WPM be for each new fab (Fab 52/62 and TSMC AZ) end of 2025?
TSMC, the leading silicon producer in the world is building factories in the US, this is great. Intel is building new factories in the US, this is great.
The boost to AZ is going to be amazing from all of this. I should have bought real estate in north phoenix LOL
It will be interesting to see how these two ACTUALLY ramp over the next 3 years.
what will the WPM be for each new fab (Fab 52/62 and TSMC AZ) end of 2025?
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FOR IMMEDIATE RELEASE
April 8, 2024Biden-Harris Administration Announces Preliminary Terms with TSMC, Expanded Investment from Company to Bring World’s Most Advanced Leading-Edge Technology to the U.S.
With Up to $6.6 Billion in Proposed CHIPS Direct Funding, TSMC Announces 2 Nanometer Technology at Second Fab and a New Third Fab to Produce 2 Nanometer or More Advanced Chips
Proposed CHIPS Investment in Arizona Would Support AI, High-Performance Computing, 5G/6G Communications, and More Applications
Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion in direct funding under the CHIPS and Science Act. This proposed funding would support TSMC’s investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors.Proposed CHIPS Investment in Arizona Would Support AI, High-Performance Computing, 5G/6G Communications, and More Applications
Through this proposed investment in TSMC Arizona, the Biden-Harris Administration would take a significant step in strengthening U.S. economic and national security by providing a reliable domestic supply of the chips that will underpin the future economy, powering the AI boom and other fast-growing industries like consumer electronics, automotive, Internet of Things, and high-performance computing. After initially announcing two fabs in the U.S., TSMC Arizona is committing to build an additional third fab before the end of the decade. With this proposed funding, TSMC Arizona would be ensuring the formation of a scaled leading-edge cluster in Arizona, creating approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs in this decade and bringing the most advanced process technology to the United States.
“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. I was determined to turn that around, and thanks to my CHIPS and Science Act – a key part of my Investing in America agenda – semiconductor manufacturing and jobs are making a comeback,” said President Joe Biden. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
“One of the key goals of President Biden’s CHIPS and Science Act was to bring the most advanced chip manufacturing in the world to the U.S., and with this announcement and TSMC’s increased investment in their Arizona campus, we are working to achieve that goal,” said U.S. Secretary of Commerce Gina Raimondo. “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. Thanks to President Biden’s leadership and TSMC’s continued investments in U.S. semiconductor manufacturing, this proposed funding would help make our supply chains more secure and create thousands of good-quality construction and manufacturing jobs for Arizonans.”
“America’s ability to maintain our competitive edge in advanced technologies like artificial intelligence is essential to igniting the next generation of research, innovation, development, and production,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “Our proposed support for TSMC Arizona represents an inflection point for America’s innovative capacity that would restore our nation’s leadership in an industry that is foundational to the U.S. and global digital economy.”
“The proposed funding from the CHIPS and Science Act would provide TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Dr. Mark Liu. “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
“We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models,” said TSMC CEO Dr. C.C. Wei. “They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”
TSMC is widely recognized as a global leader in semiconductor manufacturing, having pioneered the pure-play foundry business model in 1987, and now manufactures over 90% of the world’s leading-edge logic chips. In Arizona, TSMC’s three fabs are expected to bring a suite of the most advanced process node technologies to the United States: the first fab will produce 4nm FinFET process technologies; today, TSMC Arizona announced that the second fab will produce the world’s most advanced 2nm nanosheet process technology, in addition to previously announced plans to produce 3nm process technologies; and TSMC Arizona’s third fab will produce 2nm or more advanced process technologies depending on customer demand. At full capacity, TSMC Arizona’s three fabs would manufacture tens of millions of leading-edge chips that will power products like 5G/6G smartphones, autonomous vehicles, and AI datacenter servers. TSMC Arizona expects to begin high-volume production in their first fab in the U.S. by the first half of 2025.
Thanks to investments like those at TSMC Arizona, the United States is now on track to produce roughly 20% of the world’s leading-edge chips by 2030. With total capital expenditures of more than $65 billion, TSMC Arizona’s investment is the largest foreign direct investment in a greenfield project in U.S. history. TSMC Arizona’s investment in the United States is catalyzing meaningful investment across the supply chain, including from 14 direct suppliers that plan to construct or expand plants in Arizona or other parts of the U.S., further strengthening U.S. domestic supply chain resilience.
TSMC’s advanced chips are the backbone of core processing units (“CPUs”) for servers in large-scale datacenters and of specialized graphic processing units (“GPUs”) used for machine learning. Through the proposed funding for TSMC Arizona, the United States would onshore the critical hardware manufacturing capabilities that underpin AI’s deep language learning algorithms and inferencing techniques. This would help strengthen America’s competitive edge in science and technology innovation. Furthermore, through its Arizona fabs, TSMC will be able to better support its key customers, including U.S. companies AMD, Apple, Nvidia, and Qualcomm, among others, by addressing their leading-edge capacity demand, mitigating supply chain concerns, and enabling them to compete effectively in the ongoing digital transformation era. With the proposed incentives, TSMC Arizona has also committed to support the development of advanced packaging capabilities – the next frontier of technology innovation for chip manufacturing – through its partners in the U.S., creating the opportunity for TSMC Arizona’s customers to be able to purchase advanced chips that are made entirely on U.S. soil.
The PMT also proposes $50 million in dedicated funding to develop the company’s semiconductor and construction workforce. To build the long-term construction workforce needed to support these projects, TSMC Arizona recently signed an agreement with the Arizona Building and Construction Trades Council. The company also plans to utilize registered apprenticeship programs to meet a 15 percent apprenticeship utilization rate on the Phoenix construction site.
As part of its commitment to developing local talent, TSMC Arizona established one of the first state-supported Registered Apprenticeship programs for semiconductor technicians, with support from the City of Phoenix. TSMC's U.S.-based recruiting team is also actively collaborating with university engineering programs around the country, including Arizona State University, University of Arizona, and Purdue University, and is partnering with Maricopa Community Colleges and career technical education programs on initiatives to develop the skills for a career in the semiconductor industry. Site employees have access to discounts, reimbursements, and priority enrollment through partnerships for local area early education and childcare centers.
In addition to the proposed direct funding of up to $6.6 billion, the CHIPS Program Office would make approximately $5 billion of proposed loans – which is part of the $75 billion in loan authority provided by the CHIPS and Science Act – available to TSMC Arizona under the PMT. The company has indicated that it is planning to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
As explained in its first Notice of Funding Opportunity, the Department may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of a long-form term sheet and award documents and are conditional on the achievement of certain milestones. After the PMT is signed, the Department begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant. The terms contained in the long-form term sheet and the final award documents may differ from the terms of the PMT being announced today.
About CHIPS for America
The Department has received more than 630 statements of interest, more than 180 pre-applications and full applications for NOFO 1, and more than 160 small supplier concept plans for NOFO 2. The Department is continuing to conduct rigorous evaluation of applications to determine which projects will advance U.S. national and economic security, attract more private capital, and deliver other economic benefits to the country. The announcement with TSMC is the fifth PMT announcement the Department of Commerce has made under the CHIPS and Science Act, with additional PMT announcements expected to follow throughout 2024.
CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.
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TSMC Arizona and U.S. Department of Commerce Announce up to US$6.6 Billion in Proposed CHIPS Act Direct Funding, the Company Plans Third Leading-Edge Fab in Phoenix
Third fab will produce the most advanced leading-edge semiconductors in the U.S., bringing TSMC’s total investment in Arizona to over US$65 Billion
Issued by: TSMCIssued on:
2024/04/04
PHOENIX, Arizona, Apr. 8, 2024 – TSMC (TWSE: 2330, NYSE: TSM) today announced that the U.S. Department of Commerce and TSMC Arizona have signed a non-binding preliminary memorandum of terms (PMT) for up to US$6.6 billion in direct funding under the CHIPS and Science Act. TSMC also announced plans to build a third fab at TSMC Arizona to meet strong customer demand leveraging the most advanced semiconductor process technology in the United States.
As the company makes progress in completing its first fab and continues construction of its second fab at its Arizona subsidiary, the third fab brings TSMC’s total capital expenditure for the Phoenix, Arizona site to more than US$65 billion, making the site the largest foreign direct investment in Arizona history, and the largest foreign direct investments in a greenfield project in U.S. history.
“The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Dr. Mark Liu. “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
“We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models,” said TSMC CEO Dr. C.C. Wei. “They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”
TSMC Arizona’s three fabs are expected to create approximately 6,000 direct high-tech, high-wage jobs, building a workforce that will help to support a vibrant and competitive global semiconductor ecosystem that enables leading U.S. companies to gain access to domestically-manufactured, cutting-edge semiconductor products alongside a world-class semiconductor foundry. According to an analysis by the Greater Phoenix Economic Council, this increased investment in three fabs will create more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect supplier and consumer jobs.
TSMC Arizona’s first fab is on track to begin production leveraging 4nm technology in first half of 2025. The second fab will produce the world’s most advanced 2nm process technology with next-generation nanosheet transistors in addition to the previously announced 3nm technology, with production beginning in 2028. The third fab will produce chips using 2nm or more advanced processes, with production beginning by the end of the decade. Each of the three fabs, like all of TSMC’s advanced fabs, will have cleanroom area approximately double the size of an industry standard logic fab.
TSMC practices green manufacturing and aims to serve as a global standard for eco-friendly corporations with constant innovations in energy efficiency, water conservation, waste management, and air pollution control. TSMC Arizona’s fabs are designed and built with that same global vision and aims to achieve a 90% water recycling rate. The company has started the design phase of building an industrial water reclamation plant with a design goal of achieving “near zero liquid discharge”, bringing nearly every drop of water back into the facility.
In addition to the proposed US$6.6 billion in direct funding, the PMT also proposes to provide TSMC with up to US$5 billion in loans. TSMC plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona. The company remains committed to its long-term financial goals, which are 15-20% revenue compound annual growth rate (CAGR) in USD terms, 53% and higher gross margin, and 25% and higher return on equity (ROE).
All TSMC overseas investment are subject to regulatory approvals in Taiwan as necessary.
Remarks from our customers:
“Today’s announcement highlights the strong commitment from Secretary Raimondo and the entire administration to ensure the U.S. plays a central role creating a more geographically diverse and resilient semiconductor supply chain,” said AMD Chair and CEO Lisa Su. “TSMC has a long track record of providing the leading-edge manufacturing capabilities that have enabled AMD to focus on what we do best, designing high-performance chips that change the world. We are committed to our partnership with TSMC and look forward to building our most advanced chips in U.S.”
“TSMC is at the leading edge of advanced semiconductor technology — and when that expertise is paired with the ingenuity of American workers, incredible things are possible,” said Apple CEO Tim Cook. “We are proud to play a key part in the expansion of TSMC’s U.S. production, and we’ll continue to invest in America and support a new era of American advanced manufacturing.”
“We congratulate TSMC for its historic investment and applaud the Commerce Department for its support. TSMC has been a long-standing partner of NVIDIA since we invented the GPU and accelerated computing, and our ongoing innovation in Artificial Intelligence (AI) would not have been possible without them. We are excited to continue our partnership with TSMC as it brings cutting-edge facilities to Arizona.”
Jensen Huang, founder and CEO of NVIDIA
(Third-party quotes are included in the attached PDF file)
TSMC Spokesperson
Wendell HuangSenior Vice President & Chief Financial Officer
Tel:886-3-5055901
TSMC Deputy Spokesperson
Nina KaoPublic Relations Division
Tel:886-3-5636688 Ext.7125036
Hopefully we can all agree that the TSMC AZ fabs will be successful, even after a rough start. This tells you a lot about TSMC. Some people say the Japan fab went up faster because the food is better. I might have to agree with that. Personally I think TSMC had a point to make or something to prove which motivated them to do the Japan fabs faster than AZ. Point made, absolutely.
Personally I think TSMC had a point to make or something to prove which motivated them to do the Japan fabs faster than AZ. Point made, absolutely.MKWVentures
Moderator
TSMC AZ is going to be a enormous impact to AZ and the US. Chips act is delivering!Hopefully we can all agree that the TSMC AZ fabs will be successful, even after a rough start. This tells you a lot about TSMC. Some people say the Japan fab went up faster because the food is better. I might have to agree with that.
I don't know about Japan food.... If you said Singapore food, Taiwanese food, or Shanghai food.... Maybe
Mooredaddy
Well-known member
Thai food is the goat Asian food and every other opinion is objectively wrong. Let’s start up TSMC II (Thailand Semiconductor Manufacturing Company)TSMC AZ is going to be a enormous impact to AZ and the US. Chips act is delivering!
I don't know about Japan food.... If you said Singapore food, Taiwanese food, or Shanghai food.... Maybe
