TSMC to build 2nm fab in Arizona through US CHIPS Act funding

TSMC has committed to building a 2nm fab on US soil thanks to CHIPS Act funding

TSMC has announced that they have entered into a preliminary agreement with the US department of Commerce that should see the company build a leading-edge 2nm chipmaking fab in the US. This agreement should see TSMC receive $6.6 billion in CHIPS Act funding from the US. Furthermore, TSMC will also recieve access to $5 billion in loans under the CHIPS and Science Act.

With this funding, TSMC should be adding a third fab to their Arizona project. This should see TSMC’s investment in the region reach $65 billion, making it the largest direct foreign investment in Arizona’s history. This is the second largest allocation of CHIPS Act funding that the US Government has revealed, second only to their $8.5 billion deal with Intel.

TSMC is currently preparing their Fab 21 Phase 1 facility for operation. This facility will start making TSMC N4 and N5 (4nm/5nm class) chips in early 2025. Phase 2 is due to start operating in 2028 and make N3 and N2 (3nm and 2nm class) chips. Next up will be TSMC’s newly announced Phase 3 fab, which will create chips using “2nm and more advanced processes”.

Thanks to CHIPS Act funding, the US government has managed to significantly grow TSMC’s prescence in the US. Furthermore, they have managed to get TSMC to bring some of their most advanced technologies to the US. This change is of huge strategic value to the US government.

Companies like AMD, Apple, and Nvidia have expressed interest in using TSMC’s US-based manufacturing capacity. This guarantees that TSMC’s new US=based facilities will be highly utilised by US companies. That said, it will take years for TSMC’s full plans for Arizona to come to fruition.

You can join the discussion on TSMC’s plans to build a 2nm Fab in Arizona on the OC3D Forums.