Sinema & Kelly Celebrate $6.6 Billion CHIPS and Science Act Award to Taiwan Semiconductor Manufacturing Company, Highlight Benefit for Arizona’s Economy and National Security

Apr 8, 2024

TSMC also announced it will construct third plant in Phoenix, bringing total Arizona investment to $65 billion

Sinema and Kelly were chief negotiators of the CHIPS and Science Act in 2022 – historic legislation bringing semiconductor manufacturing back to the U.S., creating strong careers, and strengthening supply chains

WASHINGTON – Today, the U.S. Department of Commerce announced that Taiwan Semiconductor Manufacturing Company (TSMC) will receive $6.6 billion in grants and approximately $5 billion in loans from the CHIPS and Science law, led by Arizona Senators Kyrsten Sinema and Mark Kelly.

This award supports the construction of microchip manufacturing facilities in Phoenix, Arizona. TSMC also announced that it is planning to build a third microchip plant in Phoenix, which will create thousands of jobs and bring its total investment in Arizona to $65 billion.

Arizona is home to TSMC’s U.S.-based manufacturing presence, where they are constructing two microchip plants. The first of those plants will use the N4 process, producing the most advanced microchips ever made in the United States. The second and third plants will produce 3nm and 2nm microchips, making Arizona the emerging global hub for microchip development, testing, manufacturing, and packaging.

 “Today’s TSMC investment – fueled by our bipartisan CHIPS and Science law – is making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing,” said Sinema, a chief negotiator of the CHIPS and Science law and co-author of the bipartisan CHIPS for America Act.

“It’s an exciting day for Arizona where we are leading the way in bringing the most advanced microchip manufacturing back to America. That’s going to create thousands of great-paying jobs, many of which don’t require a four-year degree, and get more workers the skills they need to start these careers. It will also strengthen our national security by bringing critical technology supply chains back from overseas and reinforcing ties between the United States and Taiwan. This award is the product of the hard work we did to pass the CHIPS Act and the hard work that Mayor Gallego and our state and local economic development leaders did to bring TSMC to Phoenix,” said Kelly, a chief negotiator of the CHIPS and Science Act.

Sinema and Kelly worked for nearly two years to negotiate and champion the CHIPS and Science Act, a $52 billion plan to boost domestic microchip manufacturing. Thanks to their leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging. With new semiconductor facilities being constructed in Maricopa County, Arizona workers are already feeling the impact of this historic law.

In June 2020, Sinema first introduced the CHIPS for America Act with Senators John Cornyn (R-Texas) and Mark Warner (D-Va.) to bring semiconductor manufacturing back to the United States. TheCHIPS and Science Act included the funding to make Sinema’s CHIPS in America Act operational. Sinema was instrumental in passing the bipartisan CHIPS and Science Act into law, partnering with Republican Senator Todd Young (Ind.) to prevent the legislation from partisan collapse on the Senate floor.

Since the passage of the CHIPS and Science Act, more than $60 billion in private investment for 38 semiconductor industry projects have been announced in Arizona.

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