President Joe Biden announced that TSMC will receive funding under the CHIPS and Science Act. This funding will enable TSMC to build a third chip factory in Phoenix, Arizona. With this investment, TSMC’s total commitment to Arizona will reach $65 billion.
According to him, these facilities are set to produce the most cutting-edge chips globally, aiming to contribute to 20% of the world’s top semiconductors by 2030. Additionally, he highlighted that the agreement includes an allocation of $50 million from the CHIPS funding for the purpose of training and nurturing the local workforce. This initiative aims to provide employment opportunities in innovative industries within their hometowns, eliminating the need for workers to seek such jobs elsewhere.
TSMC, a prominent chipmaker globally, will receive up to $6.6 billion from the Biden administration. This financial support aims to enhance the United States’ domestic chip capacity.
According to Biden, the new plants will generate a total of 25,000 direct jobs in construction and manufacturing.
In a statement regarding the agreement, Commerce Secretary Gina Raimondo expressed that one of the primary objectives of President Biden’s CHIPS and Science Act was to establish cutting-edge chip manufacturing in the United States. She emphasized that this announcement, along with the increased investment by TSMC in their Arizona campus, is a significant step towards achieving this goal.
During the COVID-19 pandemic, supply chain problems with semiconductors overseas have prompted the introduction of the CHIPS and Science Act. This new legislation offers significant incentives to tech companies to encourage them to produce their products in the United States. However, in order to qualify for these incentives, companies must agree not to expand their operations in China and other countries that are deemed to be a security threat by the United States.
TSMC has greatly benefited from the legislation, with the company recently revealing plans to construct a second plant in the Phoenix area. This new facility will be dedicated to the production of advanced chips, further solidifying TSMC’s presence in the region.
In a statement from the White House, President Biden expressed his visit to the site of TSMC’s inaugural fab in Phoenix a year and a half ago. He highlighted TSMC’s dedication to the United States and their investment in Arizona as a significant milestone in the story of American semiconductor manufacturing. With the unwavering support of America’s top technology companies, these advancements contribute to the production of the essential products we depend on in our daily lives.
