China tensions underline US investment in TSMC
TechCrunchMar 27
Biden Giving $6.6B to Taiwan Company for US Chip Production
Image copyright: Annabelle Chih/Stringer/Getty Images News via Getty Images
The Facts
Aiming to encourage US-based production of advanced chips, the Biden administration announced on Monday that it has pledged to give Taiwan Semiconductor Manufacturing Co (TSMC) up to $6.6B to expand its facility in Arizona.
In addition to the $6.6B grant, the US is also giving $5B in loans to help the chipmaker expand production from two to three facilities in Phoenix, Arizona, which will create more than 25K "direct construction and manufacturing jobs."
The Spin
Pro-establishment narrative
President Biden is following through on his promise to ensure that the US has access to cutting-edge chip manufacturing on US soil — a major national security priority. By supporting TSMC's project, and providing nearly $20B in grants and loans to help the US manufacturer Intel reclaim its position as a chipmaking leader, the US will be a world leader in advanced technology. It will also create thousands of qualified jobs in Arizona.
Establishment-critical narrative
While the White House may celebrate giving $6.6B to TSMC as a major investment into US chipmaking, the real story is how the announcement will contribute to escalating tensions with China. Chip manufacturing and Taiwan are at the heart of a soft conflict between Washington and Beijing, and Biden giving billions to a Taiwanese chip giant surely won't sit well. Deepening ties with TSMC will only add fuel to the fire.
Metaculus Prediction
Go Deeper
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