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Taiwan Semiconductor Manufacturing Company (TSMC) has pledged to build advanced chips at a new Arizona factory by 2028.
TSMC is already in the process of building two factories in Arizona. The Biden administration announced a preliminary deal with the company on April 8 that will see TSMC stand up a third chip factory in Phoenix, pledging up to $6.6 billion in federal subsidies, according to the Guardian. It's estimated that the three factories together will create over 25,000 construction and manufacturing jobs in the area.
These funds will come from the CHIPS Act, which was passed in 2022 to support domestic chip manufacturing in the U.S. With those investments, the Biden administration hopes to eventually have the U.S. produce 20% of the world's most advanced semiconductors by 2030. The U.S. currently produces less than 10% of the global supply of semiconductors, and none of the most advanced ones typically used in popular technologies such as iPhones.
Other notable CHIPS Act investments include $20 billion in grants and loans for Intel for manufacturing sites in Arizona, Ohio, New Mexico, and Oregon. On April 5, South Korea chipmaker SK Hynix also announced plans to invest $3.9 billion in a chip-packaging facility in West Lafayette, Indiana.
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