Taiwan Semiconductor Manufacturing Company to Invest $65 Billion in Phoenix, Fueling U.S. Chip Industry
In a landmark investment, Taiwan Semiconductor Manufacturing Company (TSMC) plans to invest over $65 billion to construct three advanced semiconductor factories in Phoenix, Arizona. This substantial venture comes alongside a finalized $6.6 billion grant from the Biden administration, aimed at bolstering domestic chip production amid concerns regarding potential shifts in policy with the upcoming Trump administration.
Commerce Secretary Gina Raimundo hailed the investment as "one of the most important" for the nation’s economic and national security, emphasizing the thousands of jobs it is expected to create. Semiconductors, integral for technologies ranging from computers and smartphones to fighter jets and artificial intelligence, are currently mainly produced overseas.
The $6.6 billion in grants, part of the $52.7 billion allocated by the CHIPS and Science Act for semiconductor research and manufacturing, underlines the Biden administration’s commitment to reviving the U.S. chip sector. TSMC, a leader in chip manufacturing for major tech giants like Apple, NVIDIA, and AMD, announced the opening of its first Arizona factory in May 2020, with production set to ramp up soon.
Despite political discussion surrounding subsidies, including critical remarks from Trump on U.S. aid to Taiwan, support for TSMC’s endeavor remains strong within the Republican party, particularly given its potential to create jobs.
Biden underscored the historic nature of this investment, stating that once the first plant is fully operational, it will mark a significant milestone in American manufacturing, as the U.S. has dramatically decreased its share in semiconductor production since its invention. With TSMC’s commitment to meeting construction and production milestones, the project represents an unprecedented foreign investment in U.S. history and a critical step towards restoring domestic semiconductor production.
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