Biden Secures $11 Billion Deal for TSMC Chip Plants in Arizona

The agreement marks the first major disbursement under the CHIPS Act, facing potential challenges from the incoming Trump administration.

The Biden administration finalized a deal to provide over $11 billion in grants and loans to Taiwan Semiconductor Manufacturing Company (TSMC) for building three chip factories in Arizona.
This is the first significant allocation of funds from the CHIPS Act, which was passed in 2022 to boost domestic semiconductor manufacturing.
The funding is crucial as it aims to strengthen U.S. economic and national security by supporting the domestic chip industry, creating thousands of jobs.
President-elect Donald Trump has expressed opposition to the CHIPS Act, raising concerns about the future of such subsidies once he takes office.
The finalized deal with TSMC includes binding commitments, making it difficult for the incoming administration to reverse the funding agreements.