Biden administration to award billions in chip subsidies
The Biden administration is set to award billions of dollars in subsidies to major semiconductor companies, including Intel and Taiwan Semiconductor Manufacturing Co (TSMC), for building new factories in the United States, the Wall Street Journal reported on Saturday.
This initiative aims to boost the production of advanced semiconductors, crucial for smartphones, artificial intelligence, and defense systems.
Some announcements are expected before President Biden's State of the Union address on March 7. Intel, with ongoing projects in Arizona, Ohio, New Mexico, and Oregon totaling over $43.5 billion, is a likely subsidy recipient. TSMC, investing $40 billion in two plants near Phoenix, and South Korea's Samsung Electronics with a $17.3 billion project in Texas, are also strong contenders.
Other top candidates include Micron Technology, Texas Instruments, and GlobalFoundries, the WSJ added, citing industry sources. The U.S. Department of Commerce, while not discussing potential applicants, emphasized that the CHIPS awards process is merit-based and focused on projects that enhance U.S. economic and national security.
TSMC declined to comment, and Intel did not respond to a request for comment. In December, U.S. Commerce Secretary Gina Raimondo announced plans for about a dozen funding awards for semiconductor chips within the next year. This includes multi-billion dollar investments potentially transforming U.S. chip production. The first award, over $35 million, was granted in December to a BAE Systems facility in New Hampshire for producing chips for fighter planes, as part of the $39 billion "Chips for America" subsidy program passed by Congress in 2022.
