Biden to visit Taiwan chip manufacturer TSMC in Arizona

U.S. President Joe Biden will attend a tooling-in ceremony at the Arizona plant of Taiwanese microchip manufacturer TSMC today.

TSMC—the world’s largest contract chip maker—is constructing a $12 billion plant in Phoenix. The visit is part of the administration’s push to boost chip manufacturing in the U.S. The move comes amidst concerns of a potential Chinese takeover of Taiwan and the effects of such disruptions. Taiwan is a dominant manufacturer of chips used in a variety of technologies, and chip manufacturing is a backbone of their economy. In August, Biden signed into law the “Chips and Science Act” which provided $52.7 billion in legislative funding for semiconductor manufacturing and research, and a $24 billion tax credit for chip plants to alleviate the persistent semiconductor shortage that is plaguing technology manufacturing in the U.S.

Biden’s visit demonstrates the value his government sees in TSMC’s investment, and will draw additional investment from foreign firms to semiconductor manufacturing in the U.S. Expect also that technology goods manufacturers will move their operations out of China and into the U.S.to ensure easier connectivity to semiconductor manufacturers. China is unlikely to intervene, as they continue to struggle to contain Covid-19.