The Biden administration has secured a $6.6 billion grant agreement with TSMC to support three new chip manufacturing plants in Phoenix. This move is vital to enhancing U.S. semiconductor production and reducing reliance on foreign manufacturers before the end of Biden’s term. However, many projects might only materialize during the forthcoming Trump administration, complicating credit attribution.
In a swift move forward, the Biden administration has finalized a monumental agreement with Taiwan Semiconductor Manufacturing Company (TSMC), offering up to $6.6 billion in grants to bolster U.S. chip manufacturing. This funding, heralded as a pivotal achievement in the White House’s agenda, aims to support the establishment of three factories in Phoenix. President Biden emphasized the significance of this foreign direct investment, marking it as the largest for a new factory project in U.S. history. Though the completion of grant awards continues to unfold, many projects may only begin under the next administration, risking the potential credit for this significant investment.
The backdrop of this strategic initiative centers on America’s dwindling share of semiconductor production, which has plummeted to roughly 10% from 37% in 1990. The urgency for increased domestic manufacturing underscores the geopolitical tension surrounding Taiwan, a major chip supplier, amid concerns over Chinese aggression. As part of a broader response to this crisis, the CHIPS and Science Act provides crucial funding to revitalize U.S. tech manufacturing and ensure the capabilities to produce advanced semiconductors domestically, aiming to secure technological independence.
Ultimately, the Biden administration’s commitment to TSMC is not merely a transactional endeavor but a long-term vision to resurrect American chip production and reduce dependence on foreign entities. While the challenges of realizing such ambitious goals remain, bipartisan acknowledgment suggests this priority holds lasting implications for national security and economic resilience, irrespective of who receives credit as the journey continues to unfold.
Original Source: www.nytimes.com
