PHOENIX — The federal government has finalized its investments in a technology company creating a massive chip manufacturing operation in Phoenix that officials say will create good-paying jobs for decades to come.

The Taiwan Semiconductor Manufacturing Company (TSMC) is set to use the $6.6 billion to help create 20,000 construction jobs and 6,000 good-paying manufacturing jobs in Phoenix.

The grant money, which comes from the CHIPS and Science lawwill help TSMC build three factories where it will make chips used in smartphones, cars, satellites, weapons systems and other electronic devices.

Building these factories near Loop 303 and 51st Avenue north of Phoenix will ensure that the United States has a domestic supplier of these critical chips so that global crises like the global chip shortage will not threaten the American economy.

“Today’s final agreement with TSMC… will spur $65 billion in private investment to build three state-of-the-art facilities in Arizona,” President Joe Biden said. in a Friday press release.

The timing of this action is important, in part because comments made by President-elect Donald Trump before the election raised concerns about his might not follow up with funding commitments made by the Biden administration.

Phoenix semiconductor manufacturing plants to boost economy

U.S. Sen. Mark Kelly, an Arizona Democrat, helped negotiate the CHIPS and Science Act.

“Arizona is poised to become one of the world’s leading centers for cutting-edge microchip manufacturing,” he said in a news release Friday. “This is not only a victory for Arizona’s economy, but also for our national security and our continued global leadership and competitiveness.” »

TSMC is expected to begin large-scale microchip production in Phoenix early next year. First factory will produce the most advanced chips ever made in the United States

On the other hand, the second and third factories will manufacture the most advanced chips in the world.

TSMC’s commitment to invest more than $65 billion represents the largest foreign direct investment in Arizona history.

Where does the money come from for TSMC Arizona?

TSMC has signed a preliminary memorandum of understanding for funding the CHIPS Act in April.

The U.S. Department of Commerce recently completed its due diligence, paving the way for the final deal.

Phoenix Mayor Kate Gallego, who went to Taiwan to help recruit TSMC in 2019, said this partnership would improve the lives of thousands of valley residents.

“From creating incredible, good-paying union jobs to strengthening the nation’s vital supply chain for this sought-after cutting-edge technology, there is no doubt that the CHIPS Act will have a generational impact on our city, region and our country,” Gallego said. in a press release.

TSMC Arizona, a local subsidiary of the foreign company, will receive the grant. It will receive funds as it progresses through construction, production and commercial stages.

“Phoenix is ​​proud to be at the forefront of America’s manufacturing revolution and is ready to continue the strong momentum and partnership the city has with TSMC and its suppliers,” Gallego said.