Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) has secured $6.6 billion in U.S. funding and $5 billion in loan guarantees under the CHIPS and Science Act to support its $65 billion Arizona Fab 21 project. This major investment aims to enhance U.S. semiconductor production, reduce reliance on foreign suppliers, and strengthen national security.

The Arizona campus will be built in three phases, with Phase 1 set to start high-volume production in early 2025, focusing on 4nm and 5nm chips, including Apple's A16 Bionic processor. Phase 2, scheduled for 2028, will move to 3nm technology, while Phase 3 will produce advanced 2nm and 1.6nm chips, featuring innovations like gate-all-around (GAA) transistors. The entire project is expected to be completed by the decade's end, creating over 6,000 manufacturing jobs and 20,000 construction jobs.

This announcement comes just ahead of President-elect Donald Trump's inauguration, raising questions about potential policy changes. Trump has previously criticized Taiwan's impact on the U.S. chip industry and the CHIPS Act, suggesting further scrutiny could be on the horizon.

U.S. Commerce Secretary Gina Raimondo emphasized the strategic value of domestic chip production for AI, quantum computing, and military hardware. In addition to direct funding, TSMC's Arizona initiative is expected to attract $65 billion in private investments, supporting U.S. efforts for semiconductor self-sufficiency.

Beyond the U.S., TSMC is also expanding in Japan, with plans for a second and third facility in Kumamoto, focusing on 3nm chip production. Despite geopolitical challenges, TSMC continues to lead in advanced semiconductor technology, increasing its share of global EUV installations from 50% in 2020 to 56% by 2023.

TSMC's investments underscore its strategic importance in the global chip market as it diversifies beyond Taiwan, while remaining a critical player in advanced semiconductor manufacturing.