Report: Joe Biden to provide substantial subsidies to Samsung, Intel, TSMC, and other chip manufacturers
US President Joe Biden is expected to announce subsidies for semiconductor companies such as Samsung, Intel, and TSMC (Taiwan Semiconductor Manufacturing Co) in an effort to maintain a competitive edge against China and other rivals. The aim is to encourage these companies to produce advanced chips within the United States and its allied nations.
The windfall is expected to be in the billions of dollars and will be announced in the coming weeks, which will help them build new factories in the US.
The upcoming announcements aim to jump-start manufacturing of advanced semiconductors used in smartphones, artificial intelligence and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.
The announcement is expected to come before President Biden’s State of the Union address on March 7, the WSJ reports.
Where things are
Among the companies likely to receive aid is Intel, which has projects underway in Arizona, Ohio, New Mexico and Oregon worth more than $43.5 billion, the WSJ said.
Taiwan’s TSMC has up to two plants up and running near Phoenix, with a total investment expected to reach $40 billion.
Samsung is also a likely beneficiary, with a $17.3 billion project in Texas.
Micron Technology, Texas Instruments and GlobalFoundries are among the other top contenders, the WSJ added, citing industry leaders.
“This is a merit-based process and difficult commercial negotiations – CHIPS awards are entirely dependent on which projects advance US economic and national security,” a US Commerce Department spokeswoman told Reuters.
Last December, US Commerce Secretary Gina Raimondo said she would hand out about a dozen semiconductor chip funding awards over the next year, including multibillion-dollar announcements that could dramatically change US chip manufacturing, Reuters reported.
The first award was announced in December, a more than $35 million award to BAE Systems’ Hampshire facility, which produces chips for fighter jets, as part of the $39 billion “Chips for America” aid program approved by the US Congress in 2022.
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