The Biden administration has indicated on several occasions that bringing semiconductor production to the U.S. is a priority.
On Monday, the administration put its money where it’s push is.
The Biden administration pledged up to $6.6 billion so that a Taiwanese semiconductor giant can expand the facilities it is already building in Arizona, according to a report in the Associated Press. The move better ensures that the most-advanced microchips are produced domestically for the first time, the administration said.
Commerce Secretary Gina Raimondo said the funding — for Taiwan Semiconductor Manufacturing Co. — means the company can expand on its existing plans for two facilities in Phoenix and add a third, newly announced production hub.
“These are the chips that underpin all artificial intelligence, and they are the chips that are the necessary components for the technologies that we need to underpin our economy,” Raimondo said on a call with reporters, adding that they were vital to the “21st century military and national security apparatus,” according to the AP report.
The funding is tied to the CHIPS Act, passed in 2022 to revive U.S. semiconductor manufacturing. The $280 billion package is aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips stalled factory assembly lines and fueled inflation.
The Biden administration has promised tens of billions of dollars to support construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness.
“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems,” Biden said in a statement. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
Taiwan Semiconductor Manufacturing produces nearly all of the leading-edge microchips in the world and plans to eventually do so in the U.S.
