US to provide $6.6B funding for Taiwan's chipmaker

By Ovunc Kutlu

ISTANBUL (AA) - The US Commerce Department announced Monday it will provide up to $6.6 billion direct funding for Taiwan Semiconductor Manufacturing Company (TSMC) under the CHIPS and Science Act.

The department said TSMC plans to build a third fab at its facility in the US state of Arizona to meet strong customer demand of advanced semiconductor process technology.

This funding will support TSMC's investment of more than $65 billion in three leading-edge fabs in Phoenix, Arizona to manufacture the world’s most advanced semiconductors, it said in a statement.

With the additional funding, TSMC Arizona will create approximately 6,000 direct manufacturing jobs and more than 20,000 accumulated construction jobs, it added.

"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," TSMC chairman Dr. Mark Liu said in a separate statement.

"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."

TMSC said its first fab in Arizona is on track to begin production leveraging 4nm (nanometer) technology in first half of 2025, while the second fab will produce the world’s most advanced 2nm process technology, in addition to the previously announced 3nm technology, beginning in 2028.

The third fab will manufacture chips using 2nm or more advanced processes with production beginning by the end of this decade.