US govt to unleash billions in subsidies for semiconductor giants
These subsidies aim to stimulate the production of advanced semiconductors crucial for applications like smartphones, artificial intelligence, and defence.
Semicon subsidies in US: The Biden administration is set to unveil substantial subsidies, reaching billions of dollars, for major semiconductor companies, such as Intel and Taiwan Semiconductor Manufacturing Co, to establish new manufacturing facilities in the United States, as reported by the Wall Street Journal on Saturday.
Anticipated to be announced in the coming weeks, these subsidies aim to stimulate the production of advanced semiconductors crucial for applications like smartphones, artificial intelligence, and defence systems. Industry executives familiar with the negotiations revealed these details to the WSJ.
Some of the announcements are expected to precede President Joe Biden's State of the Union address scheduled for March 7, according to the report. Intel, a probable recipient, has ongoing projects in Arizona, Ohio, New Mexico, and Oregon, totalling more than $43.5 billion. Taiwan Semiconductor Manufacturing Co. (TSMC), another likely beneficiary, is investing $40 billion in two plants near Phoenix. Samsung Electronics from South Korea is also in contention with a $17.3 billion project in Texas.
Other leading contenders include Micron Technology, Texas Instruments, and GlobalFoundries, as indicated by industry executives cited by WSJ.
When approached for comments, the US Department of Commerce, Intel, and TSMC did not respond immediately to Reuters' inquiries.
In December of the previous year, US Commerce Secretary Gina Raimondo had outlined plans to announce around a dozen funding awards for semiconductor chips within the next year. These awards, including multi-billion dollar allocations, are poised to reshape US chip production significantly. The initial award, announced in December, exceeded $35 million and was designated for a BAE Systems facility in Hampshire. This facility is set to produce chips for fighter planes, constituting part of the $39 billion "Chips for America" subsidy program approved by the US Congress in 2022.
(With Reuters inputs)
Published By : Anirudh Trivedi
Published On: 27 January 2024 at 17:51 IST