To assist in the construction of new factories in the United States, the Biden administration is expected to grant billions of dollars in subsidies to leading semiconductor companies, such as Intel and Taiwan Semiconductor Manufacturing Co., in the upcoming weeks.
According to industry executives familiar with the negotiations, the upcoming announcements are intended to launch the fabrication of cutting-edge semiconductors that power cellphones, artificial intelligence, and military systems.
Laptops 1000The executives anticipate a few announcements to be made before US President Joe Biden’s State of the Union speech on March 7.
According to the report, Intel is expected to receive subsidies for projects worth over $43.5 billion that are already underway in Arizona, Ohio, New Mexico, and Oregon.
Taiwan Semiconductor Manufacturing Co. (TSMC), a potential beneficiary as well, is currently building two factories close to Phoenix with an investment of $40 billion. Samsung Electronics, a competitor based in South Korea, is working on a $17.3 billion plant in Texas.
Micron Technology, Texas Instruments, and Global Foundries are among the other leading contenders.
U.S. Commerce Secretary Gina Raimondo stated in December of last year that she would release approximately a dozen financing announcements for semiconductor chips within the next year, including multi-billion dollar announcements that would fundamentally alter the way chips are produced in the country.
As part of a $39 billion “Chips for America” subsidy program approved by the U.S. Congress in 2022, the first payment, worth over $35 million, was made in December to BAE Systems, which launched a new facility in Hampshire to produce chips for fighter planes.
