WHAT THEY ARE SAYING: Biden-Harris Administration Announces Preliminary Terms with TSMC
National Institute of Standards and Technology
This week, the Biden-Harris Administration announced that the 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 to provide up to $6.6 billion in direct funding to 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.
Here’s what they are saying about this unprecedented announcement:
Biden-Harris Administration Leaders:
President Joe Biden: “Thanks to this investment, TSMC will also build a third chip factory in Phoenix, increasing its total investment in Arizona to $65 billion and creating over 25,000 direct construction and manufacturing jobs, along with thousands of indirect jobs. These facilities will manufacture the most advanced chips in the world, putting us on track to produce 20% of the world’s leading-edge semiconductors by 2030. The agreement also dedicates $50 million of CHIPS funding to training and developing the local workforce, so workers don’t have to leave their hometowns to find good-paying jobs in innovative industries.” [Statement]
U.S. Secretary of Commerce Gina Raimondo: “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. 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.” [Statement]
Lael Brainard, White House National Economic Advisor and Co-Chair of the CHIPS Implementation Steering Council: “TSMC’s commitment to manufacture leading-edge chips in Arizona marks a new chapter for America’s semiconductor industry. Because of President Biden’s leadership, leading-edge chips will now be produced by TSMC here in America, powering the advances in AI and quantum computing that are taking place here in America, bolstering our national security and our economic security for the future.” [Statement]
Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio: “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. Our proposed support for TSMC Arizona represents an inflection point for America’s innovative capacity that would restore our national leadership in an industry that is foundational to the U.S. and global digital economy.” [Statement]
Industry Voices
Dr. C.C. Wei, CEO, TSMC: “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. 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.” [Statement]
Dr. Mark Liu, Chairman, TSMC: “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. 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.” [Statement]
Lisa Su, Chair and CEO, AMD: “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. 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.” [Statement]
Tim Cook, CEO, Apple: “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. 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.” [Statement]
Jensen Huang, Founder and CEO, NVIDIA: “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.” [Statement]
Members of Congress:
Senate Majority Leader Chuck Schumer (NY): “Across the country, manufacturing and job creation is surging. Just yesterday, the President and Secretary Raimondo announced a preliminary deal with the TSMC Arizona company to provide billions in CHIPS and Science incentives that will support over $65 billion in private investment, to build three leading chip fabs in Arizona. So, let the good news ring from coast to coast: the CHIPS and Science Act – which i worked hard on to pass here in the Senate, along with Senator Young, bipartisan – is delivering on its promise to create jobs, increase innovation, bring manufacturing back to America, and revive forgotten corners of the country.” [Statement]
U.S. Senator Mark Kelly (AZ): “It’s an exciting day for Arizona, where we are leading the way in bringing the most advanced microchip manufacturing back to America. This grant and TSMC’s commitment to increase their presence in our state are 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. This will also strengthen our national security by bringing critical technology supply chains back from overseas and reinforcing ties between the United States and Taiwan. Today’s exciting steps forward are 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.” [Statement]
U.S. Senator Kyrsten Sinema (AZ): “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.” [Statement]
U.S. Congresswoman Debbie Lesko (AZ-08): “Over the past decade, the efforts to install the Taiwan Semiconductor Manufacturing Company (TSMC) in the Arizona desert have resulted in tremendous progress as this dream nears its reality. I am proud of the partnership of all involved with this project, and I am excited to see the economic boom this new manufacturing is certain to create in the northwest valley. This union between Arizona and TSMC will lead to a brighter future for our state and nation!” [Statement]
U.S. Congressman Ruben Gallego (AZ-03): “Arizona yet again proves to be the nationwide leader in semiconductor manufacturing. Today’s announcement will create even more good-paying jobs, grow the economy, and strengthen our national security thanks to our bipartisan CHIPS and Science Act.” [Tweet]
U.S. Congressman Greg Stanton (AZ-04): “Thanks to years of hard work and strategic investments, we’ve created a thriving semiconductor ecosystem here in Arizona that’s attracted the world’s leading chip makers—including TSMC just a few years ago. Now TSMC is choosing to double down and scale their operations here, fueled by investments made under our CHIPS Act, Not only will this award create thousands of good-paying jobs, it will continue to position Arizona as a global leader for advanced manufacturing.” [Statement]
U.S. Senator John Cornyn (TX): “By investing in leading-edge semiconductor manufacturing, we are helping secure this vulnerable supply chain and boosting our national security and global competitiveness/ The chipmaking capabilities these resources will enable at TSMC will help the U.S. reclaim its leadership role in the critically important semiconductor industry.” [Statement]
U.S. Congressman Michael McCaul (TX-10): “My #CHIPSforAmericaAct is working to bring multi-billion – dollar investments to the US – just as intended. TSMC’s expansion in Arizona will bring the most advanced semiconductor technology in the world to the US, further onshoring production of this critical national security asset.” [Tweet]
U.S. Congresswoman Doris Matsui (CA-07): “Today’s announcement is another milestone on our road to reassert America’s global innovation leadership. These investments will ensure a secure pipeline of some of the most advanced semiconductors in the world – mission critical components our national security apparatus needs to succeed. As co-author of the original CHIPS Act, I am pleased to see this legislation working as intended – bringing innovative economic anchors to communities across the country, protecting our national security, and creating good-paying jobs for American workers. I will continue to work hard to ensure we maximize these investments moving forward.” [Statement]
U.S. Congressman Frank Pallone (NJ-06): “The CHIPS and Science Act is working — it’s generating billions of dollars in investment that will create new, good-paying jobs right here at home while also strengthening our domestic manufacturing industry and our supply chains.” [Tweet]
U.S. Congressman Emanuel Cleaver (MO-05): “The program is a major pillar of President Biden’s economic policy agenda, which is centered around strengthening American manufacturing. Now, because of this announcement, these chips will be made in the United States.” (Tweet)
State and Local Officials:
Governor Katie Hobbs: “Arizona is an international leader in the semiconductor industry, a testament to our strong and enduring relationship with TSMC. With this vital investment made possible by the CHIPS Act, this partnership will continue to thrive. We are at the forefront of our country’s economic future because of our high-skilled workforce and dynamic economic engine, and TSMC’s growth and investment right here in Arizona will continue to show the world that our state is the best place for businesses to invest. I want to thank ACA President Sandra Watson for her essential work cementing Arizona as the silicon desert and TSMC Chairman Mark Liu for his partnership with our state. Some of the world’s most advanced chips will be made here in Arizona at TSMC, and this investment underscores our commitment to innovation and technological leadership.” [Statement]
Mayor Kate Gallego, City of Phoenix: “Today’s announcement is yet another important milestone for Phoenix as we fast become the hub of the nation’s semiconductor industry. Thanks to this funding, TSMC will be able to continue its expansion in our city, not only creating thousands of high-wage jobs, but also playing a vital role in bringing back American manufacturing of this critical technology. We wouldn’t be able to celebrate this huge news without the support of the Biden administration and the work of our Congressional delegation, business leaders, and education partners who helped advocate for and ultimately pass the CHIPS Act. This was truly a team effort, and I look forward to the positive impact this investment will have for generations to come.” [Statement]
Arizona State Senator Frank P. Carrol: “This is a major win for Arizona, and it would not be possible without TSMC’s enthusiastic efforts to increase investments into our state’s semiconductor factories. They could have chosen to set up shop anywhere else in the country, but I believe their partnership with Arizona is a testament to the hard work set forth by both past Republican Governors and state lawmakers who prioritized business-friendly laws and investments into expanding infrastructure. Because of this historic investment, our state will see an enormous increase in job growth and will strengthen its position as a global player in business and technology.” [Statement]
Arizona State Representative David Livingston: “I am thrilled to have TSMC Arizona’s leading edge chip manufacturing in District 28. TSMC’s commitment to bringing high skilled jobs to Arizona, coupled with their strong commitment to building the next generation workforce, will bring economic prosperity to Arizona for decades to come.” [Statement]
Phoenix Councilwoman, Ann O’Brian: “Phoenix is continuing to lead the way on job growth and emerging semiconductor technologies! The announcement out of TSMC has put Phoenix on the international map and started a semiconductor revolution on U.S. soil with the announcement of a third fab and future production of the 2-nanometer semiconductor. I am beyond thrilled at the $65 billion investment TSMC is making in District 1 and remain committed to working closely with TSMC leadership.” [Statement]
Maricopa County District 3 Supervisor Bill Gates: “Today, Maricopa County woke up to the exciting news that TSMC Arizona is receiving an additional $6.6 billion from the CHIPS and Science Act to build a third top-of-the-line chip fabrication plant right here in Phoenix. Maricopa County has proven time and time again that it’s one of the best places to invest in cutting-edge tech innovation, and I am proud to see my district lead Arizona’s transformation into a global semiconductor manufacturing hub.” [Statement]
Union Leaders
Aaron Butler, President Arizona Building and Construction Trades Council: “President Biden’s investment in jobs and world class apprenticeships is key for Arizona Building and Construction Trades Council members and families. This investment keeps Arizona and the country on the cutting edge of technology. His commitment to American workers will pay dividends now and for years to come. His keen understanding that the workers building the plant are not less important than the chips produced at the plant provides a good balance to labor management relations going forward.” [Statement]
Fabian Sandez, President, Local Union No. 1912: “Western States Carpenters Local 1912 is pleased to learn not only of the US Government’s CHIPS Act investment in TSMC Arizona, but of TSMC’s increased investment in Arizona with Fab three. This investment firmly establishes our state as the Semiconductor Hub of the United States and ensures our members have hundreds of good-paying and secure jobs for decades to come. We look forward to the continuation of our long-standing relationship with TSMC Arizona and congratulate them on today’s good news.” [Statement]
Smart Local 359: “SMART Local 359 has already seen the benefits of TSMC Arizona’s investment. Just this morning, hundreds of our members donned their safety equipment and clocked in for their shift at TSMC. Today’s CHIPS Act funding announcement not only means work for our local in the years to come, but it also means the expansion of our union. Today’s announcement ensures that Arizona jobs will remain with Arizona workers.” [Statement]
Organizations:
John Neuffer, CEO, Semiconductor Industry Association: “Today’s TSMC announcement is a big win for America’s economy, supply chain resilience, and the advanced chip manufacturing ecosystem. The new TSMC facilities—sparked by the CHIPS and Science Act—will spur job creation and economic growth in Arizona while also broadening the state’s already substantial semiconductor footprint. We commend TSMC for its ambitious investments in the U.S. and applaud the Commerce Department for continuing to make progress in implementing the CHIPS Act’s landmark manufacturing incentives and R&D investments. CHIPS remains on track for great success, and we look forward to continuing to work with leaders in government and industry to ensure it delivers maximum benefits to America’s economic and technological leadership.” [Statement]
Joe Stockunas, President, SEMI Americas: “We applaud the U.S. Department of Commerce for taking this significant step to enhance the resilience of the domestic semiconductor supply chain. This CHIPS and Science Act award is a key stride towards a 2-nanometer process, positioning the United States to produce the most advanced semiconductor chips at scale in order to advance global supply chain stability and help meet worldwide chip demand across various markets. This grant increases TSMC’s total investment in Arizona to $65 billion and is expected to create 6,000 direct jobs, 20,000 construction jobs and thousands of supporting ecosystem jobs, further demonstrating the positive economic impact and job creation potential of such advancements in semiconductor manufacturing. Government investments like the CHIPS and Science Act grant for TSMC play a crucial role in semiconductor manufacturing and are of immense importance to economies globally.” [Statement]
Jason Furman, Former Director of the National Economic Council, Economist, Harvard: “The pace of investment catalyzed by the CHIPS program is truly impressive. Also it is to the credit of the program that it is not limiting its subsidies to US companies but instead is appropriately focused on advancing US national security and resilience.” [Tweet]
National Association of Manufacturers: “Today’s announcement from TSMC and @CommerceGov makes America stronger. The NAM-championed CHIPS and Science Act continues to spur new investments in cutting edge semiconductor technology that is essential to advancing U.S. economic competitiveness.” [Tweet]
Jason Oxman, President and CEO, Information Technology Industry Council: “The global digital economy will be fueled by semiconductors made in the United States, and today’s announcement marks an exciting step toward leading edge chip manufacturing in the U.S. This investment, and other investments in the domestic semiconductor ecosystem, are needed to achieve this goal, and will support the U.S. and global economy, and further U.S. national security.” [Statement]
Matthew Schruers, President, Computer & Communications Industry Association: “We applaud the Biden Administration for investing in high tech competitiveness and paving the way for more U.S.-based manufacturing capacity that will fuel innovation for products across the economy. The investment in TSMC chip-making in Arizona is a downpayment on innovation and our economic future.” [Statement]
Nancy McLernon, President and CEO, Global Business Alliance: “This grant will accelerate Taiwan Semiconductor Manufacturing Company’s (TSMC) plans to create thousands of new American jobs and build leading-edge semiconductors here in the United States. The Department of Commerce’s decision to partner with TSMC highlights Secretary Raimondo’s commitment to embracing the world-class know-how necessary to make the United States a leader in cutting-edge semiconductor manufacturing.” [Statement]
Robert Atkinson, President, Information Technology & Innovation Foundation: “ITIF congratulates TSMC and the CHIPS Program Office on the announcement of $6.6 billion in direct CHIPS funding that will go toward supporting the construction of a total of three TSMC advanced-node semiconductor manufacturing fabs in Arizona, a seminal moment that will contribute to revitalized U.S. semiconductor manufacturing competitiveness and reposition America alongside Taiwan as the leading global manufacturer of the world’s most sophisticated semiconductor logic chips.” [Statement]
Dr. Orit Frenkel, CEO, American Leadership Initiative: “American Leadership Initiative (ALI) congratulates TSMC on their investment announcement which will advance U.S. manufacturing and competitiveness, while creating good jobs. ALI has been a consistent supporter of President Biden’s industrial policies, and it is exciting to see them bearing fruit.” [Statement]
Sandra Watson, President and CEO, Arizona Commerce Authority: “We are proud to celebrate today’s historic funding announcement and TSMC’s continued high-tech growth in Arizona. TSMC’s expansion adds thousands of new jobs to Arizona’s rapidly growing semiconductor ecosystem, bolsters our state’s leadership in advanced chip technology, and represents a new milestone for U.S. supply chain resiliency. We’re sincerely grateful to TSMC for their continued commitment to and investment in Arizona and thank the Biden Administration, Governor Hobbs, and all our partners for their collaboration and leadership.” [Statement]
Chris Camacho, President & CEO, Greater Phoenix Economic Council: “With the most advanced chips in the world, TSMC is ushering a new era of national solidity through domestic semiconductor production with backing from the CHIPS funding. Greater Phoenix has emerged as the heartbeat of U.S. advanced manufacturing capabilities, and the continued partnership and collaboration between the region and company will lift both to unprecedented heights.” [Statement]
Danny Seiden, President and CEO, Arizona Chamber of Commerce and Industry: “Congratulations to TSMC on this award, which underscores the value of the CHIPS Act and will help solidify Arizona’s place as the country’s leading hub for semiconductor manufacturing. Arizona’s economy and competitive standing are made stronger by TSMC’s contributions, and we look forward to TSMC’s expanded investment and continued growth in the state.” [Statement]
Todd Sanders, President and CEO, Greater Phoenix Chamber: “It’s exciting to see the opportunities this investment will bring to Arizona. This funding will boost our economy by creating new jobs while diversifying the state’s business base along with providing an investment in infrastructure. With this support, over 25,000 direct construction and manufacturing jobs and thousands of indirect jobs will be created.” [Statement]
Sintra Hoffman, President and CEO, WESTMARC: “TSMC’s investment has put Arizona on the world map for semiconductor manufacturing. Since the original announcement, the West Valley has seen a growing interest in semiconductor companies and suppliers in this region which provide high wage employment for our residents. We could not be more excited to hear about this additional funding of $6.6 billion investment through the CHIPS Act from the U.S. Department of Commerce which will allow TSMC to further expand its planned investments in the West Valley of Metro Phoenix.” [Statement]
Steven G. Zylstra, President & CEO, Arizona Technology Council a & SciTech Institute: “TSMC’s announcement marks a significant milestone for Arizona, solidifying our state as a premier global center for cutting-edge chip manufacturing and bolstering our leadership in innovation. With the expanded investment and creation of thousands of new jobs, TSMC is not only enhancing Arizona’s economic landscape but also fostering a more vibrant environment for engineers, technicians and others to conceive groundbreaking technology. On behalf of the Council, I extend our heartfelt appreciation to TSMC for its dedication to Arizona, and we eagerly anticipate further collaboration, growth and innovation in our thriving technology ecosystem.” [Statement]
Education
Dr. Michael Crow, President, Arizona State University: “This historic investment in TSMC is the continuing expansion of the impact from the CHIPS and Science Act, in this case to support an industry leader that ASU and many others in Arizona have been proud to assist,” said Arizona State University President Michael Crow. “Today’s announcement represents not only an acknowledgement of the impact TSMC will have on innovation in semiconductor manufacturing and research in the United States, it serves as a call to action for ASU, which has pledged its full capacity for innovation, workforce development and research to advance TSMC’s long-term success. We look forward to the collaboration and work ahead.” [Statement]
Dr. Steven. R. Gonzales, Chancellor, Maricopa County Community College District: “As a leader in semiconductor manufacturing, TSMC is creating opportunities for our students to learn new technologies and develop the skills necessary to shape the future of work. Today’s announcement solidifies Arizona’s role as a leader in chip manufacturing. I look forward to the collaboration ahead as we strengthen our existing semiconductor ‘Quick Start’ programming and work with TSMC to develop an apprenticeship pathway to support the next wave of growth and TSMC’s expanding footprint.” [Statement]
Kyle Squires, Dean, Ira A. Fulton Schools of Engineering, Senior Provost for Engineering, Computing and Technology, Arizona State University: “What makes our partnership with TSMC compelling is their strategic investments that are designed to foster a comprehensive partnership encompassing recruitment, student success, faculty engagement, and breakthroughs in research and innovation. Their approach to driving these investments resonates deeply with our own direction and values at ASU. The synergy between our objectives and TSMC’s goals has established the foundation required for transformative impacts, benefiting not only ASU and TSMC, but also our region. With the CHIPS Act investment serving as the impetus, we anticipate a significant acceleration in our collaborative efforts, promising a transformative era for semiconductor innovation and technology.” [Statement]
Dr. Curtis Finch, PhD, Superintendent, Deer Valley Unified School District: “DVUSD is looking forward to the continued growth and partnership of TSMC and Deer Valley Unified School District (DVUSD). The announcement of the construction of a third fab will bring thousands of new families and students to our district family that we look forward to welcoming. These new chip fabs will sit in the epicenter of DUVSD boundaries, and as a result our community will soon become a booming area of growth, development, and advancement thanks in large part to the investment of TSMC.”
About CHIPS for America
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 (R&D) Office, responsible for R&D programs. Both offices 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.