Biden Administration Announces $6.6 Billion Grant to Boost Global Chipmaker Production in Arizona, Creating Thousands of Jobs and Restoring US Leadership in Semiconductor Technology
Biden Administration Announces $6.6 Billion Grant to Boost Global Chipmaker Production in Arizona
Creating at least 6000 direct high-tech jobs and tens of thousands of indirect supplier and consumer jobs.
The third factory is expected to open by the end of the decade.
The Biden administration has announced a $6.6 billion grant to Taiwan Semiconductor Manufacturing Company (TSMC) to boost global chipmaker production in Arizona, creating at least 6000 direct high-tech jobs and tens of thousands of indirect supplier and consumer jobs. The third factory is expected to open by the end of the decade.
The CHIPS Act aims to strengthen US leadership in semiconductor technology, with TSMC being a key partner in this effort. The company has already invested $40 billion (ʣ32bn) in the United States and is now committing an additional $6.5 billion (ʣ51bn).
The US government has also committed to providing TSMC with up to $5 billion in loans for its plans, while TSMC will apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.
The announcement marks an inflection point and is expected to restore America's leadership in an industry foundational to the US and global digital economy.
TSMC will produce 3nm chips at a facility in Arizona.
The third factory, announced on Monday, is expected to open by the end of the decade. It will create at least 6000 direct high-tech jobs.
Accuracy
TSMC will produce 3nm chips at a facility in Arizona. The fab is slated to come online in 2028 and may make even more sophisticated chips with future technologies smaller than 2nm.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
None Found At Time Of
Publication
Bias
(85%)
The article is biased towards the Biden administration's efforts to boost global chipmaker TSMC in Arizona. The author uses language that deifies President Biden and his policies, such as calling the CHIPS Act a 'game-changer', and portraying TSMC as an ally of American companies rather than just another supplier. Additionally, the article highlights only positive aspects of TSMC's investment in Arizona while ignoring any potential negative consequences or risks associated with this decision.
]The CHIPS Act is a game-changer for our economy and national security.
TSMC has agreed to build a third factory in Arizona
The US government has committed $6.6bn in subsidies and $5bn in possible loans to support the plans.
Laurie Locascio said that this deal marked an inflection point and would restore America's leadership in an industry foundational to the US and global digital economy.
TSMC is headquartered in Taiwan with a large presence in China, and it’s the world’s largest maker of semiconductors with clients including Apple.
Accuracy
TSMC has agreed to build a third factory in Arizona, raising its total investment in the United States from $40bn ($32bn) to $65bn ($51bn).
TSMC is headquartered in Taiwan with a large presence in China, and it's the world's largest maker of semiconductors with clients including Apple.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that TSMC has agreed to build a third factory in Arizona and will invest $65bn (£51bn) in the US. However, this information is not accurate as there are no official statements from TSMC regarding building a third factory or investing $65bn. Secondly, the author quotes Laurie Locascio stating that the deal would restore America's leadership in an industry that is foundational to the US and global digital economy. However, this statement is misleading as it implies that TSMC will be solely responsible for restoring American dominance in semiconductor production when there are other factors at play such as government policies and competition from other countries. Thirdly, the author mentions that China has been pushing to expand local supply amid increased tension with the US but fails to provide any evidence or context regarding this claim.
Laurie Locascio's statement about restoring America's leadership in semiconductor production is misleading as it implies that TSMC will be solely responsible for this when other factors such as government policies and competition from other countries are at play.
The article claims that TSMC will invest $65bn in the US but there are no official statements from TSMC regarding building a third factory or investing $65bn.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing the Commerce Department's prediction that the investments will expand America's share of production of the most advanced chips from zero to about 20% by 2030. This statement is not supported with evidence and should be taken as a projection rather than a fact. The author also uses inflammatory rhetoric when describing China's support for companies making electric cars, solar panels, and other projects as
The Commerce Department said the deal would create at least 6,000 direct high-tech jobs.
TSMC has already pushed back production timelines because of a shortage of skilled labor and some questions around US government incentives.
Bias
(85%)
The article is biased towards the US government's efforts to boost semiconductor production in the country. The author uses language that portrays China as a threat and highlights the economic and national security risks associated with being highly dependent on Asia for chips. Additionally, quotes from Laurie Locascio, Under Secretary of Commerce for Standards and Technology are used to further emphasize this point.
The US is currently highly dependent on Asia, especially Taiwan, for chips.
TSMC and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms (PMT) for up to US$6.6 billion in direct funding under the CHIPS and Science Act.
The three fabs are expected to create approximately 6,000 direct high-tech jobs and tens of thousands of indirect supplier and consumer jobs.
Accuracy
TSMC plans to build a third fab at TSMC Arizona, bringing its total capital expenditure for the Phoenix, Arizona site to more than US$65 billion.
According to Commerce Secretary Gina Raimondo, TSMC will produce 3nm chips at a facility in Arizona. The fab is slated to come online in 2028 and may make even more sophisticated chips with future technologies smaller than 2nm.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that TSMC will offer its foundry service of the most advanced manufacturing technologies in the United States. However, this statement is misleading as it implies that TSMC has developed these technologies itself when in fact they are using 4nm and 2nm processes which have already been developed by other companies. Secondly, the author claims that TSMC's U.S operations will expand its capability to trailblaze future advancements in semiconductor technology. However, this statement is also misleading as it implies that TSMC has not been doing so before and when in fact they have already been developing cutting-edge technologies for years. Thirdly, the author claims that TSMC's U.S operations will create approximately 6,000 direct high-tech, high-wage jobs building a workforce that will help to support a vibrant and competitive global semiconductor ecosystem. However, this statement is misleading as it implies that these jobs are new when in fact they were already created by TSMC's existing operations. Finally, the author claims that TSMC practices green manufacturing and aims to serve as a global standard for eco-friendly corporations with constant innovations in energy efficiency, water conservation, waste management, and air pollution control. However, this statement is misleading as it implies that TSMC has not been doing so before when in fact they have already been implementing these practices for years.
TSMC claims to offer its foundry service of the most advanced manufacturing technologies in the United States but uses 4nm and 2nm processes which have already been developed by other companies.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by stating that the CHIPS and Science Act provides TSMC with the opportunity to make this unprecedented investment. This statement implies that the act is a reliable source of information, but it does not provide any evidence or reasoning for why this is true. Additionally, there are several instances where the author uses inflammatory rhetoric by stating that their U.S. operations will expand TSMC's capability to trailblaze future advancements in semiconductor technology and help unleash innovations of leading U.S customers such as Apple, AMD and NVIDIA.
The CHIPS and Science Act provides TSMC with the opportunity to make this unprecedented investment
TSMC's U.S. operations will expand their capability to trailblaze future advancements in semiconductor technology
Bias
(85%)
The article contains several examples of bias. The author is Taiwan Semiconductor Manufactoring Company (TSMC), which has a vested interest in the success of its operations and partnerships with other companies. This creates a potential conflict of interest that could influence their reporting on the CHIPS Act direct funding announcement.
The article mentions that the proposed US$6.6 billion in direct funding under the CHIPS and Science Act is non-binding, which means it's not yet clear if this amount will actually be provided. This could create uncertainty for TSMC and their plans to expand their operations in Arizona.
The article mentions TSMC's plans to build a third fab at TSMC Arizona, which will bring their total capital expenditure for the Phoenix, Arizona site to more than US$65 billion. This is presented as a positive development and an opportunity for growth, but it could also be seen as an attempt by TSMC to increase its market share and profitability.
The article quotes several executives from other companies (AMD, Apple) expressing their support for the CHIPS Act direct funding announcement and their partnership with TSMC. These statements are presented in a positive light, but they could also be seen as an attempt by these companies to promote themselves or gain favor with TSMC.
Site
Conflicts
Of
Interest (50%)
TSMC has a financial interest in the CHIPS Act Direct Funding as they plan to apply for $5 billion in loans from TSMC plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.
TSMC has a financial interest in the CHIPS Act Direct Funding as they plan to apply for $5 billion in loans from TSMC plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of CHIPS Act Direct Funding as they are receiving direct funding under the act. They also have a financial tie to TSMC's Arizona subsidiary and plan to apply for loans from the U.S. Treasury Department Investment Tax Credits.
The article mentions that 'TSMC plans to apply for $5 billion in loans from TSMC plans to apply for U.S. Treasury Department Investment Tax Credits of up to 25% of the qualified capital expenditure at TSMC Arizona.'
The article states that 'Phoenix, Arizona site to date and are committed to its long-term success.'
