President Joe Biden is joining the founder of Taiwan Semiconductor Manufacturing Co. on Tuesday to announce the opening of a second chip plant in Arizona, raising the company’s investment in the state from $12 billion to $40 billion.
The company will also announce it will be producing more technically advanced chips than originally proposed. The investment by TSMC is one of the largest foreign investments in U.S. history, and the largest in the state of Arizona.
Semiconductor chips are used in everything from computers and smartphones to cars, microwaves and health care devices. The Covid-19 pandemic shined a bright light on U.S. dependence on Chinese manufacturers as lockdowns led to a global shortage of the high-tech chips.
Biden signed the CHIPS and Science Act into law in early August, allocating billions to lure manufacturers to produce the widely used chips domestically. The law includes $52.7 billion in loans, grants and other incentives as well as billions more in tax credits to encourage investment in U.S. semiconductor manufacturing.