Biden Administration Pledges $6.6 Billion to Boost Semiconductor Production in Arizona
On Monday, the Biden administration announced its commitment to allocate up to $6.6 billion to support the expansion efforts of a major Taiwanese semiconductor manufacturer in Arizona. This initiative aims to facilitate the domestic production of the most advanced microchips for the first time.
Commerce Secretary Gina Raimondo detailed that the financial support for Taiwan Semiconductor Manufacturing Co. (TSMC) would enable the company to not only proceed with its plans for two existing facilities in Phoenix but also to establish a third, newly planned production center. Raimondo emphasized the significance of these microchips for artificial intelligence and technologies crucial for the economy and national security in the 21st century.
This funding stems from the CHIPS and Science Act, a $280 billion legislative package signed by President Joe Biden in 2022, intended to rejuvenate U.S. semiconductor production, enhance military technology and manufacturing, and mitigate the supply chain disruptions like those experienced in 2021 during the pandemic.
With this move, the Biden administration seeks to bolster U.S. semiconductor production infrastructure and diminish reliance on Asian suppliers, which are perceived as a vulnerability in terms of security.
President Biden lauded TSMC’s enhanced commitment to the United States and its sizable investment in Arizona as a pivotal moment for domestic semiconductor manufacturing, which is crucial for various technology products.
TSMC, a leader in producing nearly all advanced microchips globally, plans to extend this capability to the U.S. The company initiated the construction of its first Phoenix facility in 2021 and a second one last year, committing a total of $40 billion to these projects. The addition of a third facility is expected to increase TSMC’s investment to $65 billion, with the aim of starting microchip production by the end of the decade.
These investments are projected to enable the U.S. to produce about 20% of the world’s most sophisticated chips by 2030. Raimondo highlighted the job creation potential of this initiative, including 6,000 manufacturing roles, 20,000 construction jobs, and several thousand more positions indirectly related to the semiconductor industry in Arizona.
The announcement includes potential incentives such as $50 million for workforce training in Arizona and about $5 billion in proposed loans through the CHIPS and Science Act.
Lael Brainard, director of the White House National Economic Council, regarded TSMC’s commitment as a significant milestone for the American semiconductor industry.
The announcement coincides with U.S. Treasury Secretary Janet Yellen’s visit to China, raising questions about the geopolitical implications related to Taiwan. Administration officials stated that the focus of the announcement was purely on promoting U.S. manufacturing.
TSMC’s CEO, C.C. Wei, expressed enthusiasm about the progress in Arizona and the company’s dedication to the long-term success of the site.
Also Read, Bitcoin Soars Past $72,000, Triggering Massive Short Squeeze in the Market
South African Rand Strengthens as Foreign Reserves Increase
Bookmark and Follow us for More Business News
