Biden announces deal with Taiwan-based semiconductor manufacturer for US investments

The Biden administration announced a multi-billion-dollar agreement with a Taiwan-based semiconductor manufacturer Monday to support the construction of facilities in the United States, including one in Arizona.

The administration said it had reached a preliminary agreement with Taiwan Semiconductor Manufacturing Company (TSMC), which is headquartered in Hsinchu, for funding through the CHIPS and Science Act.

The agreement would provide up to $6.6 billion in funding for the company and would support an investment of more than $65 million in three facilities in Phoenix.

Biden said in a statement that the investment will “support the construction of leading-edge semiconductor manufacturing facilities right here in the United States” and allow the company to build a third chip factory in Phoenix.

The deal also includes $50 million through the CHIPS and Science Act to train and develop the local workforce, Biden said.

“A year and a half ago, I toured the site of TSMC’s first new fab in Phoenix, Arizona,” Biden said. “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.”

The agreement with the Taiwanese company marks the latest investment through the CHIPS law, which passed Congress with bipartisan support in 2022.

Biden has repeatedly touted the importance of the CHIPS and Science Act, citing the prevalence of microchips that are used in everyday technology such as phones, cars, home appliances and more. Officials have said the law is critical to bolster domestic production of the chips to make the U.S. less reliant on foreign supply chains.

The White House has announced four other preliminary agreements with companies for CHIPS funding, including with Intel, GlobalFoundries and Bae Systems.