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Biden announces another huge deal with Taiwan-based semiconductor manufacturer; how will it benefit US?
US President Joe Biden announced a multi-million-dollar deal with a Taiwan-based semiconductor manufacturer, TMSC, to bolster America's chip manufacturing.
Amid escalating tension between China and the US, President Joe Biden announced a multi-million-dollar deal with a Taiwan-based semiconductor manufacturer to bolster America's chip manufacturing.
Taiwan chip giant, which is headquartered in Hsinchu, will support the construction of facilities across the United States, including one in Arizona.
The preliminary agreement between the TMSC and the US Commerce Department is based on a crucial investment law called the Chips and Science Act.
TSMC has decided to construct a third semiconductor plant in Arizona, bringing its total investment in the country to $65 billion. TMSC will get up to $6.6 billion in direct funding from the US under the new deal and it may receive another $5 billion as loans.
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Biden hails historic progress as TSMC set to build third chip factory in Phoenix
In addition to allowing a third chip facility in Phoenix, the investment will "support the manufacturing of leading-edge semiconductor manufacturing facilities right here in the United States," according to a statement from Biden.
Recalling his visit to TSMC’s first new fab in Phoenix around 1.5 year ago, Biden said the agreement also includes $50 million for workforce development and training,
“TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
By 2030, the United States will be able to generate 20 percent of the world's highly advanced semiconductors with the help of these facilities.
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Know about TMC and how new deal will benefit United States
Meanwhile, Biden's chief economic adviser Lael Brainard hailed the deal as "a new chapter for America's semiconductor industry."
Commerce Secretary Gina Raimondo said that it will be the first time ever that the US will be producing the most advanced semiconductor chips on the Earth.
“These are the chips that underpin all artificial intelligence,” Raimondo said.
She also disclosed that TSMC would be able to generate around 6,000 direct high-tech jobs, as well as, it has planned to offer tens of thousands of indirect employment and 20,000 positions in the establishment of the factories.
Speaking about the remarkable deal, TSMC chairman Mark Liu said that their US operations enable them to provide excellent customer service to their US clientele.
TSMC is known for generating more than half of the world's semiconductor and the company also intends to produce chips in Germany and Japan.
The Congress approved the CHIPS law in 2022 with bipartisan support, and the arrangement with the Taiwanese corporation represents the latest investment made through this legislation.
Biden is an ardent supporter of the CHIPS and Science Act as he has often pointed out how common microchips are in devices like phones, automobiles, home appliances, and more. According to officials, the bill is essential to increasing local chip production and reducing America's dependence on foreign supply chains.
Ahead of the presidential elections and Biden's second bid for the White House, this law is a cornerstone of his government's efforts to preserve and bolster the industrial strength of the United States.
