Taiwanese Chip Giant TSMC Gets $6.6 Billion Funding From US

The White House announced on Friday that it has finalized an agreement with a leading semiconductor manufacturer TSMC (Taiwan Semiconductor Manufacturing Company) to invest billions in new facilities in Arizona. This development comes as President Biden seeks to solidify key aspects of his legislative achievements before leaving office in January.

$6.6 billion grant agreement with TSMC

In a statement, Biden shared that the government had reached a $6.6 billion grant agreement with Taiwan Semiconductor Manufacturing Company (TSMC) as part of the CHIPS and Science Act. This bipartisan legislation, signed into law in 2022, aims to enhance domestic production of critical semiconductor chips.

Biden described the announcement as one of the most significant milestones in the implementation of the CHIPS and Science Act. He emphasized that the progress achieved thus far is designed to yield benefits for communities nationwide in the years to come.

New facilities at TSMC

According to Biden, the grant will facilitate $65 billion in private investment by TSMC in Arizona, leading to the establishment of three new facilities and the creation of tens of thousands of jobs by the end of the decade. The first facility is scheduled to begin operations next year.

Earlier this year, Biden introduced several preliminary grant agreements with companies, including TSMC, under the CHIPS Act. The finalization of this agreement highlights the administration’s efforts to secure these deals before President-elect Trump assumes office.

Trump against the CHIPS Act

During an October interview with podcaster Joe Rogan, Trump criticized the CHIPS Act, suggesting that it disproportionately benefits wealthy corporations. He argued that tariffs could be a more effective tool for attracting companies, though experts have cautioned that such measures would likely increase consumer costs—concerns Trump has dismissed.

Meanwhile, Speaker Mike Johnson (R-La.) recently retracted a statement suggesting that House Republicans might attempt to repeal the CHIPS and Science Act. Biden has consistently championed the law, citing the widespread use of microchips in everyday technology, including smartphones, cars, and home appliances. Administration officials have underscored the importance of the legislation in reducing reliance on foreign supply chains and strengthening domestic chip production.

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