The third fab will start production by the end of 2030. Credits: Nambawan/Shutterstock.

Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to build its third fabrication plant in the US city of Phoenix, Arizona.

The new facility was announced after TSMC signed an agreement with the US Department of Commerce to secure a funding package of $11.6bn. It includes $6.6bn in grants and an additional $5bn in low-cost government loans.

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TMSC is already constructing two plants in the state as part of an earlier $40bn investment plan. With this latest incentive, TSMC has agreed to increase funding in three Arizona fabrication plants to $65bn.

TMSC’s first fab unit is slated to begin production in the first half of 2025, the second factory from 2028 and the third near the end of the decade. The entire project is expected to create approximately 6,000 direct jobs.

Mark Liu, TSMC’s chairman, said: “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.”

This is one of a series of recent greenfield semiconductor investments in the US, including SK Hynix’s proposed plant in Indiana. The investments are motivated by the CHIPS and Science Act, which aims to incentivise semiconductor production in the United States.

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Headquartered in the city of Hsinchu in northern Taiwan, TMSC is a multinational semiconductor contract manufacturing and design company. It has around 70,000-80,000 employees globally.

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