Ada Recinos, Deputy Press Secretary, ada.recinos@sierraclub.org (Pacific Time)
Washington, DC – Today, Taiwan Semiconductor Manufacturing Corporation (TSMC), was announced as a selected recipient of $6.6 billion in public funding from the U.S. Department of Commerce. The Sierra Club joins advocates demanding TSMC follow responsible labor, environmental, and community practices in alignment with a fair, equitable, and sustainable implementation of the CHIPS and Science Act.
The Sierra Club also joins labor unions, environmental organizations, and community groups calling for enforceable agreements, otherwise workers have no guarantees that their rights will be respected and their health protected. TSMC must enter into enforceable community benefits agreements (CBAs) with workers, residents, and community organizations in the Phoenix area where their new factories will manufacture semiconductors.
TSMC’s announcement that its fabs are designed to achieve a 90% water-recycling rate is also encouraging in Arizona where water resources are so precious. The Biden Administration must hold TSMC accountable to this aim. The lack of a commitment to relying exclusively on new clean electricity is concerning in sunny Arizona. Yet, in a win for President Biden’s strong soot standard, which chipmakers like TSMC claimed would imperil domestic chipmaking, the company has announced it will up its investment in Arizona to a whopping $65 billion.
“Investing in bringing the clean energy supply chain to the U.S. is critical to a clean energy future,” said Ben Jealous, Executive Director of Sierra Club. “President Biden’s CHIPS law is making this future possible, starting with providing $6 billion to TSMC to make semiconductors in Arizona. But to fulfill the opportunity it now has, TSMC must commit to sustainability and public health. If it meets President Biden’s ambition for the law by powering factories with new clean electricity, conserving water, and by eliminating toxic chemicals, TSMC will be a world leader and a good neighbor. If TSMC continues to cause public harm with public funds, it will demonstrate that the semiconductor industry learned nothing after peppering 23 Superfund Sites into Silicon Valley.”
"In Arizona, where every drop of water is invaluable, TSMC's initiative to achieve a 90% water-recycling rate and near-zero discharge for its fabs is important and should be standard. However, it's essential for the State and the Biden Administration to hold TSMC accountable to this promise—to turn the promise into a commitment that funding hinges upon. Afterall, a 90% rate means 100% new water will be needed three times per month, and toxicants in that water will need to be treated. That’s a threat any place, but particularly in a dry state like Arizona. The absence of any commitment to use solely clean electricity raises concerns, too. We urge TSMC to power its $65 billion investment in Arizona with new clean electricity to meet President Biden's ambition for the CHIPS Law and maintain compliance with environmental standards,” said Sandy Bahr, Chapter Director, Sierra Club - Grand Canyon Chapter
“Achieving a 90% water recycling rate and ‘near zero liquid discharge’ are good first steps,” said Harry Manin, Deputy Legislative Director for Industrial Policy & Trade, Sierra Club. “The Biden Administration must ensure that the $6.6 billion in direct funding, up to $5 billion in government loans, and a mammoth 25% tax credit—all being pursued by TSMC—only flow as long as environmental commitments are met. According to TSMC’s own reporting, its wastewater discharge increased 30% between 2018 and 2022.”
Public investments in semiconductor firms like TSMC must lead to healthier communities with stable, family-sustaining employment, where workers have a say—not merely boosting profits for corporations. The semiconductor industry’s dangerous impacts are well known, since the 1970s, Silicon Valley residents have recognized its role in handling toxic chemicals, resulting in severe health issues for workers, their families, and the surrounding areas. TSMC must leave its toxic legacy behind and embrace sustainable practices in its new and expanded facilities by taking essential steps to safeguard the environment and nearby communities.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.