U.S. Commits $6.6 Billion to TSMC for Arizona Semiconductor Plant Expansion

The investment aims to bolster domestic chip production, with the new facility expected to create thousands of jobs and advance chip technology.

The U.S. Department of Commerce has pledged up to $6.6 billion in grants to TSMC for a third semiconductor manufacturing facility in Phoenix, Arizona, under the CHIPS and Science Act.
TSMC plans to invest $65 billion in the Phoenix area, aiming to create around 6,000 direct jobs and support thousands of construction positions.
The Phoenix semiconductor complex will produce 2 nm chips, marking a significant advancement in chip technology.
Concerns arise over the water usage of TSMC's facilities in drought-prone Arizona, though officials assert the city's water supply can handle the production.
The investment is part of a broader U.S. effort to strengthen domestic semiconductor manufacturing amid rising tensions with China.