ICYMI: President Biden Visits Phoenix to Discuss America's Manufacturing Boom

Yesterday, President Biden traveled to Phoenix, Arizona where he discussed the American manufacturing boom at TSMC's semiconductor manufacturing facility. During his visit, TSMC announced a plan to build a second facility, bringing their total investment in Arizona to $40 billion. This makes it one of the largest foreign direct investments in U.S. history.

This investment will create 10,000 construction jobs, and 10,000 high-paying, high tech jobs to produce cutting edge chips for companies like Apple. It will also help small business owners in Phoenix, like Paul Sarzoza and Patricia McKinley, who the President acknowledged in his remarks. And it is possible thanks to the President's economic plan – including the CHIPS and Science Act – which is ushering in an American manufacturing boom, strengthening supply chains, creating jobs, and giving families more breathing room.

See coverage below:

Associated Press: Biden visits Arizona computer chip site, highlights jobs
[Josh Boak And Aamer Madhani, 12/6/22]

The White House has simultaneously launched a video campaign to highlight the array of non-tech jobs associated with the semiconductor industry…Featured in the video campaign is Paul Sarzoza, president and CEO of Verde Clean. Sarzoza founded the company in 2019. It won a contract to clean TSMC's construction site, accounting for a third of its 150 jobs. Sarzoza's company will clean the semiconductor plant, with workers wearing what's known as a "bunny suit" to prevent any contamination from hair and skin. The government's investment was key for his company's growth, and he expects to add 150 to 200 more employees next year. "It's one step at a time," Sarzoza said. "But it's a tremendous opportunity for us."

The Arizona Republic: President Biden in Arizona: Biden says TSMC project shows US can lead world in manufacturing
[Arizona Republic Staff, 12/6/22]

He highlighted two small business owners in attendance who will benefit from the TSMC investments. Patricia McKinley, whose small trucking company was affected by the pandemic, will have new projects to grow her business, Biden said. And Paul Sarzoza, who grew up as a migrant farmworker in Phoenix and now owns a custodial business, will have TSMC as his largest customer.

Fox Business: Biden Visits Arizona Computer Chip Plant, Discusses Job Growth
[Louis Casiano, 12/6/22]

Biden administration officials said the two TSMC plants as well as new factories by Intel, Micron, Wolfspeed and others could give a decisive edge to the American military and economy at time when competition with China is heating up. Chips are a core part of many products from smartphones to washing machines and other devices. However, manufacturing them is cost prohibitive.

[…]

When Biden took office in 2021, more than 18 million people were receiving unemployment benefits, the White House. As of Tuesday, that number was down by 90%, the White House said. "What I'm most excited about is people are starting to feel a sense of optimism as they see the impact of the achievements in their own lives," Biden said Tuesday.

Axios: President Biden says American manufacturing is back as TSMC expands in Phoenix
[Jeremy Duda, 12/6/22]

The new facility is expected to be open by 2026, and will produce advanced 3-nanometer chips. Both sites are expected to produce about 600,000 semiconductor wafers annually. The expansion will increase TSMC's investment in the north Phoenix site to $40 billion, up from $12 billion. Its chairman Mark Liu said the expansion will create 21,000 construction jobs and 4,500 full-time, high-tech and high-paying positions. That's a substantial increase from the 10,000 construction jobs and 2,000 full-time positions from the first factory. He also expects about 40 supplier companies to locate in the area, which TSMC expects to create 13,000 more jobs.

CNBC: Tim Cook says Apple will use chips built in the U.S. at Arizona factory
[Kif Leswing, 12/6/22]

Apple CEO Tim Cook confirmed that Apple will buy U.S.-made microchips at an event in Arizona on Tuesday, where President Joe Biden also spoke. The chip factories will be owned and operated by Taiwan Semiconductor Manufacturing Company, the biggest foundry company with over half of the global market share. "And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America," Cook said. "This is an incredibly significant moment."

Phoenix Business Journal: Meet the cleaning company that landed a big contract with TSMC
[Audrey Jensen, 12/6/22]

For Verde Clean, a contract with one of the world's largest producers of chips means it will now need to significantly increase its staff, offer paid benefits to all of its employees at all levels; invest in manager, mentorship and training programs; and becoming Green Seal certified. […] "From an economic standpoint, not only has it doubled our business, but it will also provide growth for years to come because we're growing on the construction side, we're growing with [TSMC] as they grow over the next five years, as they open up buildings, we'll grow with them," Reyna said. "It also makes us really hopeful for the future because with that growth we're also able to scale our business."

Bloomberg: Biden Joins Tim Cook to Hail TSMC's $40 Billion US Chip Venture
[Debby Wu and Jenny Leonard, 12/6/22]

TSMC's plans are a showcase of the administration's efforts to encourage companies to bring more chip manufacturing to the US and prevent a repeat of the supply disruptions over the last two years that cost companies hundreds of billions in sales.

[…]

"They're gonna invest billions of dollars in a new enterprise," Biden said. Construction will begin at TSMC's second Arizona site in the coming year with production slated to start in 2026. In addition to the over 10,000 construction workers who will help build the site, the two Arizona fabrication plants are expected to create an additional 10,000 high-paying high-tech jobs, including 4,500 direct TSMC jobs

KNXV (ABC Phoenix, AZ): President Biden visits Phoenix to highlight Arizona's high-tech manufacturing industry
[Mark Phillips, 12/6/12]

When the deal was announced in 2020, the city projected the initial $12 billion investment would have an economic impact of $38.2 billion over 20 years. The Greater Phoenix Economic Council said the plant is expected to create nearly 43,000 jobs over 10 years. President Biden also discussed how his economic policies are helping small business owners, construction workers, engineers, senior citizens, and families across Maricopa County. Two years ago, the Phoenix unemployment rate was 6.5%, over 9,000 Phoenix residents had filed for bankruptcy, and roughly one in six small businesses was permanently closing. Today, the Phoenix area unemployment rate is down to 3.2%, while the overall Arizona economy grew by 6.3% in 2021 — the most in 16 years.

Phoenix Business Journal: Biden highlights Arizona's manufacturing growth at TSMC visit
[Audrey Jensen, 12/6/22]

Across the U.S., other semiconductor manufacturers are also gearing up plans to produce advanced chips at new complexes in states such as Idaho, Texas, Ohio and New York. Samsung Electronics Co. Ltd. could be investing a staggering $200 billion and at least 10,000 jobs and 11 fabs in Taylor, northeast of Austin in the coming decades, the Austin Business Journal reported this year.

Additional Stories:

The Arizona Republic: TSMC expansion helps the military, national security, congressman says
[Corina Vanek, 12/6/22]

Axios: 1 big thing: High-tech chips, made in America
[Mike Allen, 12/6/22]

Axios: President Biden says American manufacturing is back as TSMC expands in Phoenix
[Jeremy Duda, 12/6/2022]

Axios: The U.S. chip boom is just beginning
[Matt Phillips, 12/7/22]
 
BBC News: Taiwanese chip giant invests $40bn in US plant
[Monica Miller, 12/7/22]

CNN Business: Why the world's top chip maker is doubling down on American manufacturing
[Allison Morrow, 12/6/22]

Reuters: TSMC expects $10 billion in annual revenue from Arizona fabs
[Jane Lanhee Lee, 12/6/22]

Spectrum News 1: Biden touts infrastructure investments during visit to Arizona semiconductor plant: 'I've never been more optimistic'
[David Mendez And Rachel Tillman, 12/6/22]

The Wall Street Journal: TSMC's U.S. Chip Gambit Has Powerful Backers
[Jacky Wong, 12/7/22]

Yahoo Finance: Biden visits Arizona semiconductor plant in latest celebration of the CHIPS Act
[Ben Werschkul, 12/6/22]