Biden administration pledges $6.6 billion to cutting-edge microchips

The Biden administration has pledged to grant up to $6.6 billion to a Taiwanese semiconductor company in Arizona to expand its production of advanced microchips.

In order to help a Taiwanese semiconductor company expand the facilities it is now developing in Arizona and better assure that the most cutting-edge microchips are made domestically for the first time, the Biden administration promised on Monday to grant up to $6.6 billion.

Taiwan Semiconductor Manufacturing Co. will be able to add a third, recently announced production hub to its current plans for two buildings in Phoenix thanks to funding, according to Commerce Secretary Gina Raimondo.

The money is dependent on a comprehensive 2022 law that President Joe Biden has praised and that aims to revitalize semiconductor production in the United States. The $280 billion package, known as the CHIPS and Science Act, aims to reduce supply disruptions similar to the ones that happened in 2021 following the start of the coronavirus pandemic, when a shortage of chips slowed factory assembly lines and drove inflation, while also strengthening the U.S. lead in military technology and manufacturing.

Tens of billions of dollars have been pledged by the Biden administration to help build American chip foundries and lessen the country's reliance on Asian suppliers, which Washington views as a security risk. With aspirations to someday produce in the United States, Taiwan Semiconductor Manufacturing makes almost all of the cutting-edge microchips in the world.