The White House on Friday announced it had finalized an agreement with a major semiconductor manufacturer to invest billions of dollars in facilities in Arizona as President Biden looks to cement parts of his legislative legacy before leaving office in January.
Biden in a statement announced the government had completed a $6.6 billion grant agreement with Taiwan Semiconductor Manufacturing Company through the Chips and Science Act, a bipartisan bill signed into law in 2022 intended to boost U.S. production of critical semiconductor chips.
“Today’s announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country,” Biden said in a statement.
The grant is expected to create $65 billion of private investment by TSMC in Arizona, Biden said, which will include three new facilities and the creation of tens of thousands of jobs by the end of the decade. The first of the company’s new facilities is on track to open next year.
Biden earlier this year announced a slew of preliminary grant agreements with companies, including TSMC, through the CHIPS law. The announcement of a final agreement underscores how the administration is hoping to get those deals across the finish line before President-elect Trump takes office.
Trump has during an October interview with podcaster Joe Rogan criticized the CHIPS bill as benefitting “rich companies” and claimed he could use tariffs to attract companies instead. Experts have warned tariffs would increase costs for consumers, something Trump has dismissed.
Speaker Mike Johnson (R-La.) earlier this month had to walk back a comment in which he said House Republicans would “probably” move to try to repeal the CHIPS and Science Act.
Biden has repeatedly touted the importance of the CHIPS and Science Act, citing the prevalence of microchips that are used in everyday technology such as phones, cars, home appliances and more. Officials have said the law is critical to bolster domestic production of the chips to make the U.S. less reliant on foreign supply chains.