TSMC Begins 4nm Chip Production in Arizona, Bolstering U.S. Semiconductor Efforts

Taiwan Semiconductor Manufacturing Co. (TSMC) has started producing advanced 4-nanometer chips in Arizona, marking a milestone in the Biden administration's semiconductor strategy. U.S. Commerce Secretary Gina Raimondo highlighted this achievement as the first instance of leading-edge chip production on American soil, with quality and yield matching Taiwan's standards.

The $6.6 billion grant from the U.S. Commerce Department to TSMC's Arizona unit underscores the federal push for domestic semiconductor manufacturing. In April, TSMC expanded its investment plans by $25 billion, bringing its total U.S. commitment to $65 billion, including a third Arizona fab set to open by 2030.

TSMC’s second Arizona fab, expected to begin production in 2028, will feature 2-nanometer technology, the world's most advanced. Additionally, the company agreed to deploy its cutting-edge "A16" manufacturing technology in Arizona. The U.S. government also approved up to $5 billion in low-cost loans to support TSMC's efforts.

This initiative aligns with Raimondo’s goal to produce 20% of the world’s leading-edge logic chips domestically by 2030, up from 0% before TSMC’s Arizona operations began.

Separately, Commerce granted $407 million to Amkor Technology to develop a $2 billion advanced semiconductor packaging facility in Arizona. This plant, the largest of its kind in the U.S., will test and package millions of chips for applications like autonomous vehicles, 5G/6G, and data centers. Apple will be a key customer, sourcing chips produced at TSMC’s nearby facility.

These investments are part of a broader $52.7 billion federal program to bolster semiconductor manufacturing and research, securing America's leadership in advanced technology.