The Biden administration has pledged up to $6.6 billion in funding to Taiwan Semiconductor Manufacturing Co. (TSMC) to expand the chip facilities it is constructing in Arizona. Commerce Secretary Gina Raimondo highlighted that this investment will allow TSMC to build on its initial plans for two facilities in Phoenix and add a third production hub. These chips are essential for artificial intelligence, technology development, and national security.
President Joe Biden’s administration has celebrated the CHIPS and Science Act, a $280 billion law aimed at revitalizing U.S. semiconductor manufacturing. The funding is part of efforts to enhance military technology, reduce supply chain disruptions, and bolster national security. The investment in TSMC aligns with the goal of increasing domestic chip production to decrease reliance on foreign suppliers.
TSMC, a leading producer of microchips globally, is already working on two facilities in Arizona and has increased its investment to $40 billion. The third facility, expected to be operational by the end of the decade, will raise the total investment to $65 billion. This move positions the U.S. to produce about 20% of the world’s leading-edge chips by 2030, creating thousands of manufacturing and construction jobs.
The Biden administration’s commitment to supporting semiconductor manufacturing in the U.S. includes incentives for workforce training and proposed loans. This strategic investment not only boosts the semiconductor industry but also fosters economic growth and job creation. TSMC’s CEO, C.C. Wei, emphasized the company’s dedication to the success of its Arizona operations.
The announcement of funding for TSMC’s expansion coincides with U.S. Treasury Secretary Janet Yellen’s visit to China, raising questions about the geopolitical implications. However, the administration’s focus remains on advancing American manufacturing and strengthening domestic chip production capabilities. TSMC’s decision to manufacture cutting-edge chips in Arizona signifies a significant milestone for the semiconductor industry in the United States.
