Biden Cements TSMC Grant Before Trump Takes Over

Source: New York Times

Biden Cements TSMC Grant Before Trump Takes Over
The White House is racing to finish grant agreements for chip manufacturers, but some of its biggest successes might be credited to the Trump administration.


By Ana Swanson and Madeleine Ngo
Reporting from Washington

Nov. 15, 2024
Updated 11:00 a.m. ET

The Biden administration said on Friday that it had completed an agreement to award Taiwan Semiconductor Manufacturing Company up to $6.6 billion in grants, as federal officials race to put in place their plans to boost U.S. chip manufacturing before the end of President Biden’s term. ... The administration struck a preliminary agreement in the spring to provide TSMC with the funding, which will support three new factories in Phoenix. The government will give TSMC the money in tranches as the company meets milestones.

In a statement, Mr. Biden said that the foreign direct investment in the facilities was the largest for a new factory project in U.S. history, and that the announcement on Friday was “among the most critical milestones yet” in the rollout of his chips program. ... The agreement “demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefiting communities all across the country,” Mr. Biden said.

The administration is expected to finish more grant awards in the coming weeks. But the projects might come too late for Mr. Biden to receive much credit. Chip factories take years to build, and many of these projects will not break ground — or produce chips — until well into President-elect Donald J. Trump’s term.

Mr. Biden’s administration is working to cement its legacy with the grants as part of a $39 billion program to revitalize U.S. technology manufacturing and reduce reliance on foreign nations for critical semiconductors. The program is a pillar of the president’s economic policy, which has largely focused on bolstering American manufacturing.

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Read more: https://www.nytimes.com/2024/11/15/business/economy/tsmc-chips-grant-biden.html