Biden Administration Set to Award Billions in Subsidies to Top Semiconductor Companies
The Biden administration is expected to grant billions of dollars in subsidies to leading semiconductor companies in the upcoming weeks. Among the recipients of these subsidies are industry giants Intel and Taiwan Semiconductor Manufacturing Co. (TSMC). The aim of these subsidies is to jumpstart the manufacturing of advanced semiconductors that power various technological advancements, including smartphones, artificial intelligence systems, and weapons systems.
Industry executives anticipate some announcements regarding these subsidies to be made before President Joe Biden’s highly anticipated State of the Union address on the 7th of March.
Intel, a renowned American multinational corporation, already has several projects in progress across various locations in the United States. These projects, which are estimated to cost over $43.5 billion, are currently underway in Arizona, Ohio, New Mexico, and Oregon. On the other hand, TSMC, a Taiwanese semiconductor firm, is investing a staggering $40 billion in constructing two plants near Phoenix, Arizona.
Samsung Electronics, a major player in the industry, is also in the running for these subsidies with its $17.3 billion project in Texas. Other contenders that have their eyes on these subsidies include Micron Technology, Texas Instruments, and GlobalFoundries.
Whilst news regarding these subsidies has generated considerable interest, official statements from the U.S. Department of Commerce, Intel, and TSMC are yet to be released, as they have remained tight-lipped on the matter.
The potential funding awarded to these semiconductor companies aligns with U.S. Commerce Secretary Gina Raimondo’s previous announcement. Raimondo had disclosed plans to provide funding awards for semiconductor chips within the next year. In fact, the first of such awards was already granted in December 2023. This initial award, worth over $35 million, was given to a BAE Systems facility in Hampshire as part of the “Chips for America” subsidy program, which had been approved by Congress in 2022.
The grants set to be awarded by the Biden administration to these top semiconductor companies aim to strengthen the nation’s position in the global technology race. By supporting the manufacturing of advanced semiconductors, the U.S. hopes to remain at the forefront of innovation and maintain its competitive edge.
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