President Joe Biden’s administration plans to grant billions of dollars in subsidies to leading semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Co.
President Joe Biden’s administration is expected to award billions of dollars in subsidies to top semiconductor companies such as Intel (INTC.O.) and Taiwan Semiconductor Manufacturing Co. (2330.TW) in the coming weeks to help build new factories in the United States, according to an article.
The upcoming announcements aim to jumpstart the production of advanced semiconductors that power smartphones, artificial intelligence, and military systems, according to industry officials involved with the negotiations.
According to the article, executives expect certain announcements before Biden’s State of the Union address on March 7.
According to the report, Intel has projects worth more than $43.5 billion underway in Arizona, Ohio, New Mexico, and Oregon that are likely to benefit from the subsidies.
Another potential recipient is Taiwan Semiconductor Manufacturing Co. (TSMC), which is building two factories near Phoenix for a total investment of $40 billion. Samsung Electronics of South Korea is also a candidate, with a $17.3 billion plant in Texas.
Other major contenders include Micron Technology (MU.O.), Texas Instruments (TXN.O.), and GlobalFoundries (GFS.O.), according to industry officials.
The United States Department of Commerce refuses to discuss any potential applicants or comment on any timing reports.
“This is a merit-based process with tough commercial negotiations—CHIPS awards will be entirely dependent upon which projects will advance US economic and national security,” a department spokesperson stated.
In December of last year, U.S. Commerce Secretary Gina Raimondo stated that she would issue approximately a dozen financing awards for semiconductor chips within the next year, including multibillion-dollar announcements that may dramatically restructure U.S. chip production.
The first contract, worth more than $35 million, was made in December to BAE Systems (BAES.L), which has opened a new tab facility in Hampshire to create chips for fighter planes as part of a $39 billion “Chips for America” subsidy program passed by the United States Congress in 2022.
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