The massive $6.6 billion investment by the Biden Administration into TSMC in Arizona is stirring controversy amid allegations of discriminatory hiring practices.
At a Glance
- The Biden Administration invests $6.6 billion into TSMC for Arizona semiconductor development.
- Allegations arise of discrimination in hiring practices favoring non-American workers.
- TSMC’s plans include $65 billion in private investment and significant job creation.
- The investment aims to enhance advanced semiconductor technology production in the U.S.
Controversial Investment in TSMC
The Biden Administration announced a $6.6 billion investment in Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona, part of the broader CHIPS & Science Act initiative aiming to boost U.S. semiconductor capabilities. This funding is set against a backdrop of accusations that TSMC discriminates against local American workers in favor of East Asian, Taiwanese, and Chinese employees.
Despite the investment, a lawsuit alleges that TSMC’s hiring practices lean heavily towards non-American individuals, facilitated by visa support. The facility is part of a larger effort expected to produce advanced semiconductor technologies such as AI-capable A16 technology.
The Biden administration has finalized its $6.6 billion CHIPS Act grant to TSMC as Donald Trump's return to the White House casts a shadow over the future of the bipartisan law aimed at bringing semiconductor manufacturing onshore. https://t.co/ovlQget6Rz
— Nikkei Asia (@NikkeiAsia) November 15, 2024
Planned Job Creation and Economic Impact
The TSMC project in Arizona promises to result in $65 billion of private investment, creating tens of thousands of jobs. These include over 20,000 construction roles and approximately 6,000 direct manufacturing positions, aligned with a broader economic plan to rejuvenate U.S. manufacturing and increase America’s chip production share.
“We have since delivered on that promise, catalyzing nearly $450 billion in private investment in semiconductors, creating over 125,000 new construction and manufacturing jobs, and reshoring critical technologies to bolster our national and economic security. Today’s final agreement with TSMC – the world’s leading manufacturer of advanced semiconductors – will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade.” announced Biden.
The semiconductor plant, slated to open its first facility early next year, represents a historic milestone, reinstating American manufacturing prominence in the tech sector.
Allegations of Discrimination
A lawsuit filed against TSMC highlights concerns over workforce composition, alleging discrimination against non-East Asian and non-Taiwanese candidates. The claims point to job postings requiring Mandarin fluency and operational meetings conducted in Mandarin, emphasizing a challenging environment for American workers.
Despite the ongoing legal battle, political figures back the strategic benefits of TSMC’s presence in Arizona, framing it as vital for national security and economic growth.
Sources:
Biden Commerce Department approves $6.6 billion for semiconductor firm hit with discrimination suit
