US To Announce Billions In Subsidies For Advanced Chips

US To Announce Billions In Subsidies For Advanced Chips

The US government is expected to fund billions of dollars in subsidies for top semiconductor companies, including Intel and Taiwan Semiconductor Manufacturing Co. (TSMC). Other top contenders include Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundaries.

According to the Wall Street Journal (WSJ) report on Saturday, the upcoming announcement was made to help build new factories in the US. It further aims to kick-start the manufacturing of advanced semiconductors that power smartphones, AI, and weapon systems.

The department spokesperson said that CHIPS awards will be solely based on projects that will help enhance US economic and national security. This will be a merit-based approach with rigorous commercial discussions.

As per the WSJ’s journal, Intel is expected to receive subsidies for projects that are now in progress in Arizona, Ohio, New Mexico, and Oregon. The combined cost of these projects might exceed $43.5 billion. Meanwhile, TSMC has two plants under construction with a $40 billion investment near Phoenix and South Korea’s Samsung Electronics with a $17.3 billion project in Texas.

Before U.S. President Joe Biden’s State of the Union speech on March 7, business leaders anticipate announcements on subsidies.