On Friday, the White House revealed that it had finalized a deal with a leading semiconductor manufacturer, marking a major step in President Biden’s efforts to secure parts of his legislative legacy before he leaves office in January.
In a statement, Biden announced the completion of a $6.6 billion grant agreement with Taiwan Semiconductor Manufacturing Company (TSMC), facilitated by the CHIPS and Science Act. This bipartisan bill, signed into law in 2022, aims to boost U.S. semiconductor production.
Biden highlighted the purposeof the agreement, calling it one of the most important milestones in the implementation of the CHIPS & Science Act. He stressed that it ensures continued progress in the coming years, benefiting communities across the nation.
Biden Accelerates CHIPS Law Implementation With Major Semiconductor Agreement.
The grant will help generate $65 billion in private investment from TSMC in Arizona, which will fund three new facilities and create tens of thousands of jobs by the decade’s end. The first of these new facilities is slated to open next year.
Earlier this year, Biden revealed several preliminary grant agreements under the CHIPS law, including one with TSMC. The final agreement signals the administration’s urgency to finalize these deals before President-elect Trump assumes office.
Trump, in an October interview with podcaster Joe Rogan, criticized the CHIPS bill, claiming it mainly benefits “rich companies” and suggesting that tariffs could be used to lure businesses instead. However, experts have cautioned that such tariffs would raise costs for consumers, a concern Trump has dismissed.
This month, Speaker Mike Johnson (R-La.) had to retract a statement in which he suggested that House Republicans might attempt to repeal the CHIPS and Science Act.
Biden has consistently emphasized the importance of the CHIPS and Science Act, pointing to the widespread use of microchips in everyday products like phones, cars, and appliances. Officials argue that the law is vital for strengthening domestic chip production and reducing reliance on foreign supply chains.
