Biden announces $6.6bn investment in Taiwan’s TSMC to boost chip production in the US

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Taiwanese chip giant TSMC has announced plans to build a third facility in Arizona as part of a $65bn investment in the US. The United States has pledged up to $6.6bn in funding to support TSMC’s expansion, with the goal of increasing domestic production of advanced chips for industries like artificial intelligence.

This investment is tied to the CHIPS and Science Act signed by President Biden in 2022, which aims to revitalize the US semiconductor industry through subsidies to attract private investment. Biden stated that this funding will help the US regain its position as a leader in semiconductor manufacturing, with the goal of producing 20% of the world’s leading-edge chips by 2030.

TSMC, which currently dominates the global market for microchips, is looking to diversify its production away from Taiwan. The company has already begun construction on two facilities in Arizona, with plans to expand to Japan and Germany as well.

In addition to supporting TSMC, the Biden administration is reportedly set to announce over $6bn in funding for South Korea’s Samsung to increase chip production in Texas. This move is part of a broader effort to improve domestic chip manufacturing and reduce reliance on foreign suppliers.

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