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President Biden has announced a multi-billion-dollar collaboration with the Taiwan Semiconductor Manufacturing Company (TSMC) to expand semiconductor manufacturing within the United States.

This agreement aligns with the goals of the CHIPS and Science Act, offering up to $6.6 billion in funding to facilitate the construction of TSMC facilities, particularly in Arizona. Specifically, the funding is set to support a significant investment by TSMC, amounting to over $65 million in three Phoenix-based facilities, including establishing a new chip factory.

The deal also incorporates a $50 million initiative under the CHIPS and Science Act for workforce development and training in the local community.

In his statement, Biden said, “A year and a half ago, I toured the site of TSMC’s first new fab in Phoenix, Arizona. TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”

This agreement represents the latest in a series of investments facilitated by the CHIPS Act, which had bipartisan approval in 2022. The Biden administration has consistently highlighted the importance of this act in ensuring the US remains at the forefront of technological innovation and manufacturing, which is crucial for the country’s economic and strategic security. The move also ensures that the United States is not dependent on any other country, mainly China, for chips needed in almost every piece of technology used today.