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Chip giant TSMC and the US agree to make advanced products in Arizona

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Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chipmaker, has agreed to manufacture its most advanced products in Arizona starting in 2028, supporting the Biden administration’s efforts to bring the semiconductor supply chain home.

TSMC will produce state-of-the-art 2-nanometre chips at its second Phoenix fab.

The company will also increase its investment in the US from $40 billion to $65 billion and build a third fab with 2nm or more advanced technology to be operational by 2030.

The Taiwanese company and the US Department of Commerce announced on Monday that Washington will provide the company with $6.6 billion in grants and up to $5 billion in loans.

The grants are part of the Chip Act, which was passed in 2022 to revive US industry. Last month, the Biden administration announced an $8.5 billion grant and up to $11 billion loan agreement for Intel, which has pledged $100 billion in new investment.

TSMC’s commitment helps the White House meet its goal of moving 20 per cent of the world’s advanced semiconductor production onshore by 2030. About 90 per cent of advanced chips are currently made in Taiwan.

US Secretary of Commerce Gina Raimondo said: “TSMC is expanding its manufacturing capacity in Arizona so that, for the first time, we will produce the world’s most advanced semiconductor chips right here in the United States. We are significantly strengthening our national security position,” Raimondo said.

The deal means some of the most advanced chips used in artificial intelligence could be made in the US by the end of the decade, rather than chipmakers such as Nvidia and AMD having to rely on production in Asia.

“Our US operations enable us to better support our US customers, which include many of the world’s leading technology companies,” said Mark Liu, president of TSMC.

TSMC had previously planned to operate its US factories using manufacturing technology that was a generation older than the most advanced technology used in mass production in Taiwan. The first Arizona plant was to begin 4nm production next year, and the second would introduce 3nm two or three years later.

But most AI chips will run on 3nm from next year or 2026.

By the time TSMC’s second Arizona fab opens, Nvidia and other AI chipmakers will have moved to 2nm, an engineer familiar with the process told the FT. That’s why TSMC’s original plan for this fab to run at 3nm “didn’t make sense”, a company executive said.

Raimondo said: “The chips that TSMC makes … are the foundation of all AI. It takes tens of thousands of precursor chips to train a single precursor AI model, and now, thanks to this agreement, those chips will be made in the US,” Raimondo said.

AMERICA

Trump appoints Gaetz as Justice Secretary, Gabbard as Intelligence Chief

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U.S. President-elect Tulsi Gabbard has begun making new appointments to her cabinet, with former President Donald Trump taking to social media to announce these prominent selections.

Trump confirmed the appointment of one of his most loyal supporters, Matt Gaetz, a Florida Congressman, as Secretary of Justice. Gaetz, known for his strong conservative stance, has been at the center of various investigations, and some Republican senators have voiced reservations about his nomination.

“Matt will end gun-grabbing, secure our borders, dismantle criminal organizations, and restore Americans’ faith and trust in the Department of Justice,” Trump said in a statement.

Attorney General under scrutiny

Trump defended Gaetz’s record, citing his outspoken defense during previous investigations, where Gaetz actively opposed what he referred to as the “Russia hoax.”

In June, the House Ethics Committee launched an investigation into Gaetz over allegations of sexual misconduct, drug use, and obstruction of justice. Gaetz has denied any wrongdoing and has consistently maintained his innocence. The Justice Department spent two years investigating claims that Gaetz engaged in inappropriate conduct with a minor and violated federal sex trafficking laws. However, in 2022, the department closed the investigation without filing charges.

Israel lobby reacts to Gaetz’s appointment

Gaetz’s appointment has stirred reactions, particularly within the Israel lobby in the United States. In 2018, the Anti-Defamation League (ADL) and the Republican Jewish Coalition criticized Gaetz for inviting Charles Johnson, a known Holocaust denier, as his guest to the State of the Union address. Johnson had publicly expressed doubts about the Holocaust, controversially claiming that “only 250,000 died of disease” rather than 6 million Jews.

Gaetz denied that Johnson was a Holocaust denier, telling BuzzFeed: “He’s not a Holocaust denier and he’s not anti-Semitic. He’s a provocateur. I should have vetted him better before inviting him to the State of the Union; I regret that I didn’t. I take responsibility for that.”

Former Democrat Tulsi Gabbard to lead Intelligence Agency

In addition to Gaetz’s nomination, Trump announced former Democratic Congresswoman Tulsi Gabbard as the Director of National Intelligence.

“For more than two decades, Tulsi has fought for our country and the freedoms of all Americans,” Trump stated. Gabbard, a former representative from Hawaii, served in the National Guard and held her House seat from 2013 to 2021. In 2022, she left the Democratic Party and became an independent before aligning with the Republican Party. “She is now a proud Republican!” Trump added.

Gabbard gained national attention during the 2020 Democratic primaries. In 2017, she traveled to Syria and controversially remarked that Syrian President Bashar al-Assad “is not an enemy of the United States,” explaining that her visit aimed to “see and hear directly from the Syrian people.”

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Trump continues to fill his cabinet with Israel supporters

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President-elect Donald Trump continues to shape his cabinet, set to take office in January. Trump has nominated South Dakota Governor Kristi Noem to lead the Department of Homeland Security. She will work closely with Border Czar Tom Homan to “secure the border and ensure that our American homeland is safe from our enemies,” Trump stated.

Kristi Noem, a devout Christian and the first woman elected governor of South Dakota, is now in her second term. Reflecting on her leadership in South Dakota, Trump highlighted Noem’s dedication to border security: “Kristi has been very strong on border security. She was the first governor to send National Guard troops to aid Texas during the Biden Border Crisis—a commitment she’s upheld eight times.”

Noem has faced criticism for controversial remarks suggesting South Dakota’s indigenous tribes benefit from the drug cartel industry. This statement led to her being banned from all nine reservations in the state.

Although not a border state governor, Noem has consistently taken a tough stance on immigration. In 2010, she supported an effort to block the Obama administration’s lawsuit against Arizona’s immigration law. During Trump’s first term, she called for punitive actions against sanctuary cities that refuse to cooperate with federal immigration authorities.

Noem is also known as a strong supporter of Israel. Earlier this year, she signed a bill mandating that the International Holocaust Remembrance Alliance’s (IHRA) definition of anti-Semitism be used in discrimination investigations. The bill, titled “Ensuring the Safety of God’s Chosen People,” garnered praise from former Israeli Foreign Minister Israel Katz, who called Noem a “true friend of Israel.”

In March 2024, Noem faced a lawsuit from Travelers United, a consumer advocacy group, after endorsing a Texas-based cosmetic dentist without disclosing a financial relationship. Travelers United claimed Noem had begun “working as a social media influencer,” promoting services without transparency. Noem clarified on X (formerly Twitter) that she “never received any money” for these alleged endorsements.

New Israeli Ambassador Huckabee: ‘There is no such thing as a Palestinian’

Donald Trump announced that Mike Huckabee, former Arkansas governor, will serve as U.S. ambassador to Israel. A long-time ally of Israeli Prime Minister Benjamin Netanyahu, Huckabee has consistently supported Jewish settlers and backs Israel’s claim to annex parts of the occupied West Bank.

“Mike Huckabee loves Israel and the people of Israel. He will work tirelessly for peace in the Middle East,” Trump stated. Huckabee, an evangelical pastor and host on the Trinity Broadcasting Network (TBN), is a staunch defender of Israel’s historical rights in the West Bank and believes in Israel’s right to annex this region.

Fox News host Hegseth tapped to lead Pentagon

Trump’s selection of Fox News host and former military officer Pete Hegseth as head of the Pentagon surprised many. Hegseth, a vocal America First proponent, lacks traditional government or Pentagon experience, sparking discussion on Trump’s unconventional choice.

“Pete is tough, smart, and a true believer in America First. With Pete at the helm, America’s military will be great again, and our enemies will take notice,” Trump remarked.

Though Hegseth’s selection deviates from Trump’s other traditional security appointments, he has gained Trump’s respect through his book, The War on Our Warriors, which criticizes left-wing attitudes toward U.S. troops. Hegseth is a decorated Army combat veteran and former CEO of Concerned Veterans for America, a group funded by the Koch brothers that advocates for outsourcing veterans’ healthcare.

Hegseth also garnered Trump’s favor through his advocacy for the pardons of service members convicted of war crimes, including 1st Lieutenant Clint Lorance and Major Mathew Golsteyn.

CIA appointment: Ratcliffe’s anti-Iran stance

John Ratcliffe, former Director of National Intelligence, has been appointed CIA Director, reinforcing Trump’s hardline stance against Iran. Ratcliffe replaces Bill Burns, who led Biden’s attempts to broker ceasefires in Gaza.

An outspoken critic of Biden’s foreign policy, Ratcliffe has accused the administration of downplaying intelligence on Hamas to avoid escalation. He argues that deprioritizing Middle Eastern intelligence has left the U.S. vulnerable to terrorist threats. Ratcliffe also alleged Iranian interference in the 2020 election, accusing the regime of trying to “foment social unrest” in the U.S.

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Ukraine offers natural resources to win Trump’s support

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The Ukrainian government’s “victory plan” for the incoming Donald Trump administration seeks to influence the US president-elect by highlighting potential business deals, access to raw materials, and troop deployments.

According to The Financial Times (FT), Ukrainian and European officials report that Ukraine’s allies in Europe and the US, including senior Republicans, are consulting on how best to propose initiatives that encourage closer cooperation with Kyiv rather than cut essential aid to the country.

These proposals stem from concerns among Ukrainian and European officials that Trump may move quickly toward a peace deal with Russia, potentially jeopardizing Western support for Ukraine.

Two of the ideas reportedly presented to Trump are outlined in Volodymyr Zelensky’s “victory plan.” They were later presented to the Ukrainian president during his meeting with Trump in New York in September.

One proposal suggests replacing some US troops stationed in Europe with Ukrainian forces after the war ends. The other, initially conceived by Republican Senator Lindsey Graham, proposes sharing Ukraine’s critical natural resources with Western partners, according to sources involved in drafting Zelensky’s plan.

A source familiar with the meeting said Trump expressed interest in these two points.

Ukrainian business leaders are also in talks with the government about granting Trump “investment screening” powers that would allow him to select who can do business in the country. An insider described this concept as “ABC—anybody but China,” a stance believed to resonate with Trump.

Certain Ukrainian industries, particularly those relying on Chinese technology and materials like telecommunications, could transition to US suppliers, potentially attracting Western investment. While still in its early stages, some business leaders close to the presidential administration believe this idea could appeal to Trump.

After Trump’s re-election last week, Zelensky reported a “great” first phone call. However, officials in Kyiv and its allies worry the US could reduce military support when Republicans take office in January.

Officials added that Ukraine and its allies fear Russian President Vladimir Putin, strengthened by Russia’s battlefield successes, may “drive a hard bargain” and pressure Washington into a peace deal favoring Moscow.

A person involved in drafting Kyiv’s proposal remarked, “The first to blink loses this game. Putin thinks he is on a winning track and can secure everything he wants.”

Meanwhile, European officials are concerned about being excluded from Trump-led negotiations and lacking influence over any potential solutions that could impact European security in the medium term.

Western allies have reacted somewhat indifferently to the “victory plan,” especially regarding the call for NATO membership for Kyiv and advanced weapons support.

An individual involved in the planning stated that Ukraine began drafting its proposals over the summer “to establish our narrative before Trump establishes his.”

Long frustrated by President Joe Biden’s reluctance to escalate military support, Kyiv hopes Trump will find the points specifically tailored for him compelling.

“The level of dissatisfaction with the Biden administration had reached a point where they felt it was time for change, and that this change [to Trump] could be beneficial,” the source said.

Oleksandr Merezhko, chairman of the Ukrainian parliament’s foreign affairs committee, described the offer to the incoming US president as “a strategic move to demonstrate that Ukraine is not a burden on the West.”

“Trump wants to be a winner, not a loser. To be a winner, he needs to show Putin his place,” Merezhko added.

Sources also indicate that Kyiv aims to “appease the Trump camp” by replacing Oksana Markarova, its ambassador to Washington. Republican House Speaker Mike Johnson had called for Markarova’s dismissal after she organized an all-Democrat visit to a US munitions factory for Zelensky in September.

Former Foreign Minister Dmytro Kuleba was reportedly offered the post but declined.

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