06:55 AM EDT, 04/08/2024 (MT Newswires) -- Taiwan Semiconductor Manufacturing ( TSM ) said Monday it would receive up to a $6.6 billion subsidy from the US Commerce Department to expand the facilities for advanced semiconductor production at its existing plants in Phoenix, Arizona.

TSMC said it would invest up to $65 billion in its Arizona sites with plans to build a third fab in the state by 2030. It will also produce the world's most advanced 2-nanometer semiconductor at its second fab in Arizona starting in 2028.

The Taiwanese chipmaker's $65-billion investment is the largest foreign direct investment in a new project in US history, the Commerce Department said.

TSMC's award also provides up to $5 billion in low-cost government loans, according to the company.

The grant is covered by the CHIPS and Science Act, which aims "to bring the most advanced chip manufacturing in the world to the US," said US Secretary of Commerce Gina Raimondo in a statement. "With this announcement and TSMC's increased investment in their Arizona campus, we are working to achieve that goal."

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