American manufacturing is back, folks.President Biden while visiting the site of a new computer chip plant in Arizona. The new plant is being built by the world’s largest contract chip maker, the Taiwan Semiconductor Manufacturing Co.
Why the push for computer chips? They are essential to most modern appliances, smartphones, cars, and airplanes. Big names including President Biden and Apple CEO Tim Cook were in Arizona when the Taiwan Semiconductor Manufacturing Company (TSMC) announced its plans to build a second chip processing plant in the area.
Why It Matters: The U.S. gets most of its chips from Taiwan and South Korea. In an effort to push for more domestic options, the Chips and Science Act of 2022 was signed into law in August and includes subsidies to encourage companies to build production plants in the U.S.; TSMC choosing to open the new plant in Arizona is "one of the largest foreign investments in U.S. history, and the biggest in the state of Arizona," per CNBC.
Big Picture: White House coordinator for chip investments, Ronnie Chatterji explained: “At scale, these two [factories] could meet the entire U.S. demand for U.S. chips when they’re completed.” The first plant is scheduled to begin production in 2024, and the second in 2026.
TSMC's U.S. Chip Gambit Has Powerful Backers (The Wall Street Journal)
by Jenna Lee,