The Biden administration has pledged to provide up to $6.6 billion to Taiwan Semiconductor Manufacturing Co. (TSMC) to expand its facilities in Arizona, ensuring the production of advanced microchips domestically for the first time. Commerce Secretary Gina Raimondo emphasized the importance of these chips in underpinning artificial intelligence, military technology, and national security. This funding is part of the CHIPS and Science Act, a $280 billion package aimed at revitalizing U.S. manufacturing and technology sectors while reducing reliance on Asian suppliers.

TSMC, known for producing nearly all leading-edge microchips globally, has already begun construction on two facilities in Phoenix and plans to add a third hub. By the end of the decade, the company's total investment in these projects will reach $65 billion, with the goal of producing 20% of the world's leading-edge chips by 2030. This expansion is expected to create 6,000 manufacturing jobs, 20,000 construction jobs, and numerous indirect positions in Arizona's chip-related industries.

In addition to financial incentives, such as $50 million for workforce training and $5 billion in proposed loans, the U.S. government aims to support TSMC's efforts to manufacture leading-edge chips in America. White House National Economic Council Director Lael Brainard hailed this commitment as a new chapter for the semiconductor industry. TSMC CEO C.C. Wei expressed excitement for the progress of the Arizona site and its long-term success.

The announcement coincided with U.S. Treasury Secretary Janet Yellen's visit to China, raising questions about potential geopolitical implications. However, senior administration officials clarified that the focus was solely on advancing U.S. interests and strengthening domestic chip production. President Biden praised TSMC's renewed commitment to the United States, emphasizing the importance of securing the supply chain for critical technologies.