The Biden administration on Monday pledged to provide up to $6.6 billion to help the Taiwanese semiconductor giant expand a facility it is already building in Arizona, allowing it to produce cutting-edge microchips domestically for the first time.
Commerce Secretary Gina Raimondo said the funding for Taiwan Semiconductor Manufacturing Company means the company can expand existing plans for two facilities in Phoenix and add a newly announced third production site. Then he said.
“These are the chips that underpin all artificial intelligence, these are the chips that are a necessary component of the technology that we need to support our economy,” Raimondo said on a call with reporters. “Artificial intelligence” is extremely important, he added. military and national security apparatus of the century. ”
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The funding is tied to the sweeping 2022 legislation celebrated by President Joe Biden aimed at reviving U.S. semiconductor manufacturing. The $280 billion package, known as the Chips and Science Act, would provide military technology and science while minimizing the kinds of supply disruptions that occurred when the chip shortage stalled in 2021 after the coronavirus pandemic began. The goal is to further strengthen America’s dominance in manufacturing. Factory assembly lines and accelerating inflation.
The Biden administration has pledged tens of billions of dollars to help build U.S. chip foundries and reduce dependence on Asian suppliers, which the U.S. government views as a security weakness.
“Semiconductors – chips smaller than the tip of a finger – power everything from smartphones to cars to satellites and weapons systems,” Biden said in a statement. “TSMC’s renewed commitment to the U.S. and investment in Arizona will expand the reach of semiconductor manufacturing, which is made in the U.S. and has strong support from America’s leading technology companies to build the products we rely on every day. It represents a story.”
Commerce Secretary Gina Raimondo attends an event in Bangkok, Thailand, March 13, 2024. After the Biden administration pledged billions of dollars in funding to secure the global economy on April 8, 2024, Raimondo emphasized the importance of microchips as a critical technology for the economy. . The most advanced chip was produced domestically for the first time. (AP Photo/Sakchai Lalit, File)
Taiwan Semiconductor Manufacturing produces nearly all the most advanced microchips in the world, and will eventually produce them in the United States.
The company began construction on its first facility in Phoenix in 2021 and began construction work on its second hub last year, increasing its total investment in both projects to $40 billion. Raimondo said the third facility is expected to produce microchips by the end of the decade, increasing the company’s commitment to a total of $65 billion.
The investments will put the U.S. on track to produce about 20% of the world’s most advanced chips by 2030, Raimondo said, adding that these investments will add 6,000 manufacturing jobs and 20,000 construction jobs. In addition to the job creation, thousands of new jobs indirectly linked to various industries should also be created, he said. Chip-related industry suppliers involved in the Arizona project.
The potential incentives announced Monday include $50 million to help train Arizona’s workforce to work in the new facility. Additionally, approximately $5 billion of the proposed financing would be available through CHIPS and the Science Act.
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“TSMC’s commitment to manufacturing cutting-edge chips in Arizona marks a new chapter for the U.S. semiconductor industry,” Lael Brainard, director of the White House National Economic Council, told reporters. .
The announcement was made during US Treasury Secretary Janet Yellen’s visit to China. In a call with reporters, administration officials were asked whether the Biden administration was wary of China regarding future investments, given the delicate geopolitics surrounding Taiwan. Officials said only that Monday’s announcement focused solely on progress in U.S. manufacturing.
TSMC CEO CC Wei said in a statement that the company is “excited about the progress the company has made in Arizona to date” and is “committed to its long-term success.”
