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President Biden is a semiconductor manufacturer.White House Taiwan Semiconductor Manufacturing Company (TSMC) has received a $6.6 billion grant to build three manufacturing plants (also known as fabs) in the Phoenix, Arizona area. This will be supplemented by approximately $5 billion in government financing.
As part of the deal, TSMC agreed to expand its investment plans in Arizona by $25 billion to $65 billion.company The White House says this is the largest foreign direct investment in Arizona’s history and is expected to bring 6,000 high-wage technology jobs and 20,000 construction jobs to the state.
One of the great things about these factories is that TSMC can complete all aspects of the chip manufacturing process, including advanced packaging, in the United States. I’m not talking about slapping a box or warranty information around the chip. In this context, packaging refers to the arrangement of various components to build the final product, in addition to adding power supplies, inputs, and outputs. As it stands, even components manufactured in the United States are shipped back around the world for final sale. These Arizona factories will eventually stop installing jets altogether.
Once all three factories are up and running, they will reportedly produce tens of millions of chips to power products such as smartphones, self-driving cars, and, of course, AI data center servers. The partnership with Apple means future iPhones and Macs will use 4nm and 3nm chips manufactured at the Phoenix factory. TSMC already has its first two factories up and running, but current plans are for the first factory to be fully operational by next year, the second factory in 2028, and the third by 2030. It is scheduled to go into operation.
The White House says this investment and other CHIPS Act grants and loans will transform the United States into a global chip manufacturing powerhouse. The federal government has indicated that the United States will manufacture 20 percent of the world’s most advanced chips by 2030.
“America invented these chips, but over time they went from producing nearly 40 percent of the world’s capacity to nearly 10 percent, and no more cutting-edge chips were being produced, and the economy and the nation It exposed us to grave national security vulnerabilities,” President Biden said.
One of the primary goals of the CHIPS Act was to attract global chipmakers to manufacture on U.S. soil, and it appears to be working well. Samsung announced last week that it would be worth $44 billion and has ambitious expansion plans. Multinational semiconductor company GlobalFoundries will help pay for a new manufacturing facility in New York that will handle the production of chips for the automotive, aerospace, defense and AI industries. Intel recently received up to $8.5 billion to continue its various U.S.-based operations.