Biden to visit Taiwan factory in Arizona
2022.12.06 05:26
Biden to visit Taiwan factory in Arizona
Budrigannews.com – On Tuesday, President Joe Biden will pay a visit to the TSMC factory in Arizona. The Taiwanese chipmaker is planning to invest $40 billion in the factory, making it one of the largest foreign investments ever made in the United States.
After supply-chain issues disrupted the U.S. economy early in his presidency, the investment is a significant victory for Biden.
Apple (NASDAQ:) will join Vice President Biden on his trip to the Phoenix facility of Taiwan Semiconductor Manufacturing Co. to promote efforts to boost technology manufacturing in the United States. CEO Tim Cook, Morris Chang, founder of TSMC, and the CEOs of Micron (NASDAQ:), NVIDIA and Sanjay Mehrotra (NASDAQ:) The White House stated that others included founder and CEO Jensen Huang.
They will attend a “tool-in” ceremony, which is the symbolic placement of the initial piece of equipment on the $12 billion facility’s shop floor. The plant is booked to be functional in 2024.
TSMC is a major supplier to major U.S. hardware manufacturers like Apple and NVIDIA and is the largest contract chipmaker in the world.
In prepared remarks for the event on Tuesday, NVIDIA’s Huang stated, “Bringing TSMC’s investment to the United States is a masterstroke and a game-changing development for the industry.”
By 2026, executives at TSMC will announce plans to construct a second nearby facility that will produce cutting-edge chips.
The organization will report its subsequent plant will create progressed N3 chips by 2026 and that its ongoing office will foster much more state of the art chips than initially proposed, going from N5 down to N4.
One of the largest foreign direct investments ever made in the United States, TSMC’s $40 billion investment in Arizona’s two facilities is the company’s largest investment outside of Taiwan.
After the pandemic caused supply-chain issues that resulted in a lack of chips for vehicles and many other products, Biden has sought to increase semiconductor production.
A White House report on supply-chain issues from last year stated that U.S. semiconductor production now accounts for just 12% of the global total, down from 37% two decades ago.
Concerns about Taiwan’s over-reliance on the island have arisen, particularly as China intensifies military pressure to assert its sovereignty claims. Taiwan holds a dominant position as a manufacturer of chips used in everything from cell phones to automobiles to fighter jets.
Despite Taipei’s democratically elected government’s strong opposition to Beijing’s sovereignty claims, China still claims Taiwan as its territory.
The goal of the $52.7 billion “Chips and Science” Act, which Biden signed into law in August, is to stop supply chain problems from getting worse again.
According to Brian Deese, director of the White House National Economic Council, “the occasion for the president’s travel is to mark a significant milestone that TSMC is reaching in bringing the most advanced semiconductor manufacturing back to the U.S.”
After Republican Donald Trump won Arizona in 2016, Biden’s victory in the 2020 presidential election helped propel him to the White House.
Biden has stated that in 2024 he will run for a second four-year term.
