Overview

• 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.