TSMC Arizona secures funding ahead of Trump’s term; other companies scramble

PHOENIX (AZFamily) — The Biden Administration announced Friday it has finalized the $6.6 billion investment in TSMC Arizona through the CHIPS Act, but more than 20 companies are still racing to secure promised funding before President-elect Donald Trump takes office.

One of those companies is Intel, which is building a semiconductor manufacturing facility in Chandler.

“We have confidence in Intel’s long-term vision for U.S. manufacturing and continue to discuss their award with them,” said Geoff Burgan, a spokesperson for the U.S. Department of Commerce.

On the campaign trail, President-elect Donald Trump expressed contempt for the CHIPS Act, one of the signature achievements of Joe Biden’s presidency.

In October, Trump told podcaster Joe Rogan the U.S. could avoid subsidies to “rich companies” by imposing stiff tariffs instead.

“You didn’t have to put up 10 cents,” Trump said. “You tariff it so high that they will come and build their chip companies for nothing.”

On Friday, President Biden called the finalized deal with TSMC “among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act.”

TSMC plans to invest $65 billion to build three semiconductor fabs in north Phoenix, the largest investment in Arizona history.

The project is expected to create 6,000 permanent jobs by the end of the decade when all three fabs are operating and more than 20,000 temporary construction jobs.

“We are thrilled that the Biden Administration’s Department of Commerce has awarded TSMC with this critical funding that will spur the company’s historic $65 billion investment in our community—an investment that is already changing lives for thousands of residents,” said Phoenix Mayor Kate Gallego in a statement.

As part of the final deal, TSMC agreed to various workplace standards, environmental commitments and community investments.

The company pledged to offset 100% of its carbon emissions, establish a worker safety committee, and invest millions into workforce development and K-12 STEM programs.

In a nod to unions, the company agreed to have at least 15% of its construction workers enrolled in registered apprenticeships. TSMC also “agreed to undertake efforts” to enter into partnerships with unions.

The company also pledged to invest in child care, including providing every employee with $1,800 per child per year for childcare expenses.

Some experts believe Trump could loosen or undo childcare subsidies and environmental regulations when in office, particularly if these agreements aren’t finalized before his administration.

Tim Bartik, an economist with the Upjohn Institute for Employment Research, said eliminating these subsidies could change who benefits from the CHIPS Act.

“The jobs will tend to go more to people who already don’t need child care or who already have child care arrangements,” he said. “They’ll tend to be a little more upper income. You might also find that more of the jobs would go to immigrants, because some of the local residents who maybe would want to access these jobs would not be able to access them.”

A spokesperson for Intel confirmed the company continues work to finalize $8.5 billion in grants.

“The Commerce Department has said it wants to complete the process by the end of the year. Intel has already invested more than $30 billion in our U.S. projects, and we will keep doing our part to restore U.S. semiconductor technology and manufacturing leadership,” the spokesperson said.

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