The Biden administration is set to award up to $6.6 billion in grants to Taiwan Semiconductor Manufacturing Company (TSMC), the leading maker of the most advanced microchips, in an effort to bring cutting-edge semiconductor technology to the United States. This move is part of the bipartisan CHIPS and Science Act and will support the construction of TSMC’s first major U.S. hub in Phoenix.
TSMC has committed to building two plants at the site and will use some of the grant money to construct a third factory in Phoenix. This investment is crucial for building a reliable domestic supply of semiconductors, which are essential for various technologies, from phones to fighter jets.
The CHIPS Act, passed in 2022, allocated $39 billion to the Commerce Department to distribute as subsidies to incentivize companies to build and expand chip plants across the United States. This initiative is a key component of President Biden’s economic policy agenda, aimed at strengthening American manufacturing.
Gina Raimondo, the commerce secretary, emphasized the importance of this investment in national security, as it will enable the U.S. to manufacture the most advanced semiconductors domestically. TSMC’s expansion is expected to create thousands of direct manufacturing jobs and construction jobs.
The grant to TSMC is part of a larger effort to re-establish the United States as a leader in semiconductor manufacturing. Other major chipmakers, such as Intel, are also receiving significant grants and loans to boost their operations in the country. This push for domestic semiconductor production comes in response to global supply chain vulnerabilities highlighted by chip shortages during the pandemic.
