Summary
The Biden administration finalized a $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC) for its Arizona chip factories, securing CHIPS Act funding before President-elect Trump takes office.
TSMC plans to invest $65 billion in three Phoenix fabs, creating thousands of jobs and bolstering U.S. semiconductor production.
The funds, part of the $52.7 billion CHIPS Act, aim to reduce U.S. reliance on foreign-made chips.
Despite Trump’s criticism of the subsidies, the agreement is legally binding, ensuring continued progress on the largest foreign investment in U.S. manufacturing history.
It doesn’t just create thousands of domestic jobs and reduce the cost gap between Taiwanese and Chinese semiconductors, it also ensures a financial pipeline for Taiwan.
They’ll need all the help they can get once Trump pulls US support ships out of the Taiwan Strait, allowing Chinese control of Taiwanese ports once again.