Sinema and Kelly negotiated the CHIPS and Science Act in 2022 – historic legislation bringing semiconductor manufacturing back to the U.S., creating strong careers, and strengthening supply chains
Sinema’s CHIPS and Science Act included the funding to make the CHIPS in America Act operational
WASHINGTON – Arizona Senators Kyrsten Sinema and Mark Kelly announced the finalized $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC) from the CHIPS and Science law, led by Sinema and Kelly. This award supports the expansion of TSMC’s microchip manufacturing facilities in Phoenix.
In April, Sinema and Kelly celebrated the U.S. Department of Commerce’s preliminary agreement to award $6.6 billion in grants and approximately $5 billion in loans to support the construction of TSMC’s three manufacturing facilities in Phoenix, further cementing Arizona’s role as a global hub for microchip development, testing, manufacturing, and packaging.
“I’m proud that our bipartisan CHIPS and Science law led to today’s finalized $6.6 billion award for TSMC – making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing,” said Sinema.
“With this final agreement in place with TSMC, Arizona is set to become one of the world’s key centers for leading-edge microchip manufacturing,” said Kelly. “For the first time, the advanced microchips that power America’s military and tech innovators will be made here at home. These investments through the CHIPS and Science Act have us on track to double America’s share of the global microchip market by 2030, strengthening national security, bringing supply chains back to the U.S., and creating tens of thousands of good paying jobs, many of which won’t require a four-year degree. This is not only a win for Arizona’s economy, but for our national security and our continued global leadership and competitiveness.”
TSMC also announced that it is planning to build a third microchip plant in Phoenix, which will create thousands of jobs and bring its total investment in Arizona to $65 billion – marking the largest foreign direct investment in Arizona’s history. The three plants are expected to create approximately 6,000 good-paying manufacturing jobs and generate more than 20,000 construction jobs. As a part of today’s award, TSMC is committing to providing affordable child-care for their employees.
Arizona is home to TSMC’s U.S.-based manufacturing presence, where they are constructing three microchip plants. The first of those plants will use the N4 process, producing the most advanced microchips ever made in the United States. The second and third plants will produce 3nm and 2nm microchips, making Arizona a leading global hub for advanced microchip development, testing, manufacturing, and packaging.
Sinema and Kelly worked for nearly two years to negotiate and champion the CHIPS and Science Act, a $52 billion plan to boost domestic microchip manufacturing. Thanks to their leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging. With new semiconductor facilities being constructed in Maricopa County, Arizona workers are already feeling the impact of this historic law.
In June 2020, Sinema first introduced the CHIPS for America Act with Senators John Cornyn (R-Texas) and Mark Warner (D-Va.) to bring semiconductor manufacturing back to the United States. The CHIPS and Science Act included the funding to make Sinema’s CHIPS in America Act operational. Sinema was instrumental in passing the bipartisan CHIPS and Science Act into law, partnering with Republican Senator Todd Young (Ind.) to prevent the legislation from partisan collapse on the Senate floor.
Since the passage of the CHIPS and Science Act, more than $102 billion in private investment from more than 40 semiconductor industry projects have been announced in Arizona.