President Biden has announced a major investment plan with Taiwan Semiconductor Manufacturing Corporation (TSMC) that aims to strengthen chip production capabilities in the United States. In a multi-billion dollar preliminary agreement between TSMC and the U.S. Commerce Department, the Taiwanese chip giant will support the construction of new manufacturing facilities across America, including its third plant in Arizona.
TSMC is the world's largest contract chipmaker and supplies leading tech companies like Apple. This latest deal builds on TSMC's already sizable $10 billion investment in an Arizona fab announced last year. With its total commitment to the U.S. now reaching an estimated $65 billion, TSMC will help address the ongoing global semiconductor shortage while creating thousands of high-tech American jobs.
The agreement between TSMC and Washington will be facilitated through the CHIPS and Science Act, a $52 billion legislative package approved by Congress to boost domestic chip R&D and manufacturing. By supporting the local production of advanced logic and memory chips, the U.S. can reduce its reliance on offshore suppliers and secure critical technology supply chains, especially amid geopolitical tensions.
With multiple fabs in the works across different states, TSMC's expanded presence is a big win for American research, development and manufacturing capabilities. Once operations are fully ramped up, the economic impact will be immense as a more self-sufficient chip ecosystem takes shape to fuel innovations for years to come.
