President Joe Biden’s administration is set to announce billions of dollars in subsidies for top semiconductor companies, including Intel and Taiwan Semiconductor Manufacturing Co (TSMC), to help establish new factories in the United States. These subsidies aim to kick-start the production of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems.
According to the Wall Street Journal, industry executives familiar with the negotiations anticipate the announcements to be made in the coming weeks, with some expected before President Biden’s State of the Union address on March 7. These subsidies will provide a much-needed boost to the manufacturing of advanced chips in the US.
Intel, one of the likely recipients of the subsidies, has ongoing projects in Arizona, Ohio, New Mexico, and Oregon, which will require an investment of over $43.5 billion. TSMC, another contender, is currently constructing two plants near Phoenix with a total investment of $40 billion. Samsung Electronics from South Korea is also in the running, with a $17.3 billion project underway in Texas.
Additionally, other leading semiconductor companies such as Micron Technology, Texas Instruments, and GlobalFoundries are among the top contenders, as reported by industry executives.
The exact details of the subsidies and the companies that will receive them have not been disclosed by the US Department of Commerce. When asked about potential applicants and timing reports, they declined to comment.
By providing these subsidies, the US government aims to strengthen the domestic semiconductor industry, reduce supply chain vulnerabilities, and regain a competitive edge in this critical sector. The global shortage of semiconductors has highlighted the importance of having robust chip manufacturing capabilities within the country.
The support from the Biden administration is expected to bolster job creation, accelerate technological advancements, and reinforce America’s position in the global semiconductor market.
This article discusses the upcoming announcement of billions of dollars in subsidies for top semiconductor companies by the US government. These subsidies are intended to jump-start the manufacturing of advanced chips that are key components of smartphones, artificial intelligence systems, and weapons platforms. Industry executives anticipate the announcements to be made in the next few weeks, with some possible announcements before President Biden’s State of the Union address on March 7. The subsidies will support leading companies such as Intel, TSMC, Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundries. The exact details of the subsidies and the recipient companies have not been disclosed by the US Department of Commerce. The subsidies aim to strengthen the US semiconductor industry, mitigate supply chain vulnerabilities, and enhance the country’s competitiveness in this critical sector. The support from the Biden administration is expected to create jobs, drive technological progress, and solidify America’s position in the global semiconductor market.
