Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in its US manufacturing facilities, with Arizona being the primary beneficiary of this move. However, President Donald Trump’s recent address to Congress has reignited debate over the future of the semiconductor industry and the impact of the CHIPS Act.
The announcement was seen as a result of Trump’s efforts to attract foreign companies into the country, citing lower regulations and taxes as incentives. Rep. Abe Hamadeh (R-Ariz.) credits Trump with playing a crucial role in TSMC’s investment decision, stating that the company abandoned its policies on investing abroad due to the US offering more favorable terms.
Hamadeh also echoed Trump’s sentiments on tariffs, arguing that they are effective in boosting American manufacturing and making it more attractive for companies like TSMC to invest locally. However, the debate over the CHIPS Act, which provided direct financial incentives to grow the semiconductor industry supply chain, has sparked concerns among lawmakers.
Sen. Mark Kelly (D-Ariz.) warned that repealing the CHIPS Act would harm the entire American microchip industry, including suppliers and American companies. He also emphasized the importance of bipartisan work in securing investments like TSMC’s $100 billion announcement.
The semiconductor industry plays a critical role in operating everyday technology, including consumer electronics like phones and computers. With tensions between China and the US rising, concerns over national security have led to increased scrutiny on foreign investment in the sector.
As the debate over the CHIPS Act continues, one thing is clear: TSMC’s $100 billion investment in US manufacturing has significant implications for Arizona and the wider semiconductor industry.
Source: https://www.foxnews.com/politics/gop-lawmaker-credits-trumps-business-prowess-major-investment-state-make-deals