The Biden Administration will provide Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s largest producer of semiconductor chips—with $6.6 billion in subsidies and $5 billion in potential loans to build a third chip-manufacturing factory in Arizona. This ups the company’s investment in the U.S. to $65 billion.
The U.S. government has been focusing on boosting the production of chips in the U.S., as the country is currently dependent on Asia, especially Taiwan, for them. To do so, it pledged more than $50 billion in grants to support manufacturing and research. The Commerce Department forecast that American production of chips will increase to 20% of the total market share by 2030.
TSMC first announced a U.S. facility in 2020, with the site expected to open next year. The newest facility will likely open at the end of the decade.
