The US government has announced plans to provide $6.6 billion to Taiwan Semiconductor Manufacturing Company (TSMC) to help build three semiconductor chip factories in Arizona. This is part of President Joe Biden’s efforts to secure the supply of advanced chips and reduce the country’s dependence on foreign manufacturers. TSMC, which currently produces around 90% of the world’s most advanced chips, will be investing a total of $65 billion in Arizona, representing the largest foreign direct investment in the state’s history.
TSMC Chairman Mark Liu described the investment as unprecedented, highlighting the importance of providing US customers, including leading technology companies, with a domestic supply of chips. The three fabrication plants are expected to create around 6,000 high-wage tech jobs and more than 20,000 indirect jobs in construction and related industries. The first fab is set to start production in the first half of 2025, enabling US customers to access chips used in a wide range of products, from smartphones to artificial intelligence systems.
The decision to bring more chip production onshore comes in response to the disruptions caused by the coronavirus pandemic, which led to bottlenecks in chip deliveries and increased consumer goods prices. The US government also aims to reduce vulnerabilities in the semiconductor supply chain, particularly in light of potential tensions with China and natural disasters like the recent earthquake in Taiwan that could impact chip production. The investment in domestic chip manufacturing is seen as a step towards strengthening the country’s supply chain resilience.
Commerce Secretary Gina Raimondo emphasized President Biden’s focus on enhancing domestic production of semiconductor chips to address national security risks and economic vulnerabilities. The government funds allocated to TSMC for the Arizona fabs signal a shift towards greater self-sufficiency in the semiconductor industry and a move away from reliance on foreign manufacturers. This initiative marks a significant milestone in the production of advanced chips in the United States and is expected to have far-reaching impacts on the technology sector.
The collaboration between the US government and TSMC reflects a strategic effort to boost domestic chip manufacturing capabilities and ensure a stable supply of advanced semiconductor chips. The partnership aims to create a more resilient and secure semiconductor supply chain, reducing the country’s dependence on foreign sources for critical technologies. The investment in the Arizona fabs is poised to not only create thousands of high-wage jobs but also position the United States as a global leader in semiconductor innovation and production.
Overall, the $6.6 billion investment in TSMC’s semiconductor fabs in Arizona marks a significant step towards enhancing the domestic production of advanced chips and strengthening the country’s semiconductor supply chain. This partnership between the US government and TSMC reflects a strategic effort to reduce vulnerabilities in the semiconductor industry, enhance national security, and create high-wage tech jobs in the United States. The initiative is expected to have a transformative impact on the technology sector and position the country as a leader in semiconductor manufacturing on a global scale.
