On Monday, the Biden administration announced a big agreement to support developing facilities in the United States of America with Taiwan Semiconductor Manufacturing Company (TSMC), a major semiconductor manufacturer.
The deal, made possible by the CHIPS and Science Act, would give TSMC financing of up to $6.6 billion, supporting an investment of more than $65 million at three facilities located in Phoenix, Arizona. According to President Biden, the investment will boost semiconductor production in the United States and allow TSMC to open a third chip plant in Phoenix. In addition, the CHIPS and Science Act will provide $50 million for workforce development and training.
This agreement is a key component of a larger plan to increase domestic semiconductor production and lessen dependency on outside supply networks. Recognising the importance of microchips in various technologies, the Biden administration has focused on the CHIPS statute, which was passed in 2022 with bipartisan support.
Furthermore, the White House has negotiated preliminary deals for CHIPS funding with GlobalFoundries, Intel, and Bae Systems, among other businesses. These initiatives support Biden’s goals of developing homegrown innovation in vital industries and strengthening America’s technology infrastructure.
