Biden would provide $6.6 billion to Taiwan’s TSMC to increase semiconductor manufacture in the US
As part of President Joe Biden’s attempts to assure the supply of cutting-edge chips, the US government intends to pay $6.6 billion to the largest semiconductor chip producer in the world to help it develop three plants in Arizona.
Along with over $5 billion in government financing, the White House said on Monday that it had inked a non-binding deal with Taiwan Semiconductor Manufacturing Company (TSMC) to supply the money for the fabrication factories, or «fabs,» located near Phoenix.
The Taiwanese chip manufacturer, which produces 90% of the most sophisticated chips in the world, revealed on Monday that it will add a third factory to the two already announced in the US, increasing its total investment in Arizona to over $65 billion.
In a statement, Chairman of TSMC (TSM), Mark Liu, referred to the investment as «unprecedented» and mentioned that some of the top technological businesses in the world are among its US clients. The three factories, the first of which is scheduled to begin production in the first half of 2025, will provide these clients with access to a domestic supply of chips, which power a plethora of products, including artificial intelligence systems and smartphones and satellites.
According to the White House, the company’s $65 billion overall investment is the biggest foreign direct investment in Arizona’s history. It is anticipated that the three factories would generate over 20,000 indirect employment, such as those in construction, and over 6,000 high-paying IT jobs.
