U.S Department of Commerce finalizes $6.6 billion CHIPS Act funding for TSMC Fab 21 Arizona site

The U.S. government has shed some light on TSMC’s plans concerning the new Fab 21 complex near Phoenix, Arizona and revealed the foundry’s plans to eventually build chips on its A16 (1.6nm-class) and N2 (2nm-class) process technologies in America by the end of the decade. Also, TSMC and the U.S. government today finalized funding of TSMC’s Fab 21 under the U.S. CHIPS and Science Act. 

TSMC and the U.S. Department of Commerce finalized the deal under which the contract chipmaker gets $6.6 billion in direct funding and $5 billion in loan guarantees under the CHIPS and Science Act to build its Fab 21 site in Arizona. The whole campus will require funding of approximately $65 billion, and includes three fab modules, will be completely built by the end of the decade. The fabs will create over 6,000 of direct manufacturing jobs and over 20,000 accumulated construction jobs. 

While the formal sign off of the agreement between TSMC and the U.S. Department of Commerce is important, the preliminary roadmap outline for Fab 21 is definitely no less important. For now, TSMC is committed to make chips on its most advanced production node announced to date — A16 — in the U.S., albeit at least about three years after it enters mass production in late 2026 in Taiwan. 

TSMC’s 1.6nm process, like its 2nm counterparts (N2, N2P, N2X), uses gate-all-around (GAA) nanosheet transistors and adds a unique backside power delivery system dubbed Super Power Rail. This advancement boosts performance and efficiency over N2P, offering up to 10% higher clock speeds at the same voltage and 15%–20% lower power consumption at the same frequency and complexity. Also, it promises a 7%–10% increase in transistor density, depending on design. 

“TSMC appreciates the continual collaboration with customers, partners, local communities and the U.S. government beginning in early 2020,” said Dr. C.C. Wei, chairman and chief executive of TSMC. “The signing of this agreement helps us to accelerate…