(IntegrityPress.org) – In a bid to encourage computer chip production in the U.S., the world’s highest valued semiconductor manufacturer has been awarded a $11.6 billion federal subsidy to move manufacturing to American shores. Taiwan Semiconductor Manufacturing Company (TMSC) says it plans to start building some of its most advanced chips in Phoenix, Arizona, by 2028. The company is currently in the process of building two factories in the state but will build a third as part of its latest agreement with the U.S. government.
The move may offer some security to computer chip supply in the U.S., as TMSC has long stood as a giant in its field, meaning that the U.S., along with the rest of the world, is heavily dependent on Taiwan for its supply of chips. The U.S. has taken a largely supportive stance on the issue of Taiwan’s independence, contradicting that of the Chinese government, which maintains that Taiwan has no right to independence and should be brought back under the control of the Chinese Communist Party. While Pres. Biden has publicly stated that his administration does not support Taiwanese independence, the U.S. continues to provide military support to the island and has maintained a friendly relationship with it, even in the face of Chinese disapproval.
The TMSC deal has seen the company offered up to $6.6 billion in grants as well as a further $5 billion in loans. As a result, the U.S. hopes to keep up a steady supply of computer chips, no matter what happens between Taiwan and China in the future. The move is also expected to create 6,000 high-tech jobs as well as 20,000 jobs relating to the factories’ constructions and possibly tens of thousands of jobs created indirectly, giving a significant economic boost to Arizona, which is predicted to be a swing state in the upcoming presidential election.
TMSC’s federal funding came as part of the 2022 CHIPS and Science Act, which has also resulted in federal investment for its rivals, Intel and Samsung. Intel is reported to have won nearly $20 billion in loans and grants, while Samsung Electronics Co. Ltd. is set to receive around $6 billion.
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