TSMC seeking up to $15 billion from federal government for Arizona chip plants

Apr 23, 2023, 5:00 AM

(TSMC Photo)...

(TSMC Photo)

(TSMC Photo)

Taiwan Semiconductor Manufacturing Co. is seeking up to $15 billion in tax credits and grants from the federal government to support its Arizona semiconductor plants amid concerns about subsidy criteria, the Wall Street Journal reported Wednesday.

TSMC expects to receive $7 billion to $8 billion in tax credits under the CHIPS Act, in addition to $6 billion to $7 billion in grants for its Arizona plants, according to the WSJ, citing people familiar with the matter.

TSMC is investing more than $40 billion in building two fabs in north Phoenix, marking one of the largest foreign direct investments in the state and U.S. history. It plans to employ more than 4,500 workers at its Arizona campus where it will produce 3-and-4 nanometer chips, the Phoenix Business Journal previously reported.

TSMC has expressed concern about CHIPS Act subsidy criteria, including rules that would require the company to share some profits with the U.S. government if returns exceed projections. The company is concerned that economics of its Arizona project may not pencil out if profits are capped by the government, according to the WSJ.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Facebook Photo)...

Associated Press

Pilot killed in small plane crash near Eloy Municipal Airport

A pilot has been killed in a small plane crash in a vacant lot near Eloy Municipal Airport, about halfway between Phoenix and Tucson, police said.

8 hours ago

Firebird Motorsports Park....

Chandler racing complex renamed Firebird Motorsports Park

Wild Horse Pass Motorsports Park in Chandler has a new name -- Firebird Motorsports Park.

10 hours ago

Pamela Andrews...

Silver Alert canceled after 68-year-old woman located

The Mesa Police Department canceled a Silver Alert on Saturday after locating Pamela Andrew, the Arizona Department of Safety says.

10 hours ago

Silver Alert...

Silver Alert canceled after 81-year-old found dead

John Saler, an 81-year-old who went missing in Tonopah on Wednesday, was found deceased, authorities said Saturday.

12 hours ago

Southwest Human Development...

New Head Start early education center set to open in Phoenix

Southwest Human Development will host an open house for a new Head Start campus in Phoenix next week.

14 hours ago

caution tape...

Woman charged with murdering her husband in west Valley home

A woman is behind bars for allegedly murdering her husband in their west Valley home, according to police.

16 hours ago

Sponsored Articles

Follow @iamdamonallred...

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Follow @KTAR923...

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.


Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

TSMC seeking up to $15 billion from federal government for Arizona chip plants