U.S. Pledges Billions in Subsidies to Boost Domestic Semiconductor Production

The Biden administration is set to offer billions of dollars in subsidies to leading semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Co. in the next weeks to help establish new facilities in the United States, the Wall Street Journal reported on Saturday.

The U.S. Will Reportedly Announce Billions In Incentives For Advanced Chips

According to industry officials involved with the negotiations, the upcoming announcements are intended to jumpstart the production of advanced semiconductors used in smartphones, artificial intelligence, and military systems.

The CEOs expect certain announcements to be made before the U.S. According to the Wall Street Journal, President Joe Biden will deliver his State of the Union speech on March 7. According to the report, Intel has projects worth more than $43.5 billion in Arizona, Ohio, New Mexico, and Oregon that are likely to benefit from the subsidies.

Semiconductor Titans Eye Massive U.S. Expansion with Multi-Billion Dollar Investments

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, as per Reuters (via Yahoo).

Other strong contenders are Micron Technology, Texas Instruments, and GlobalFoundries, according to industry executives quoted by the Wall Street Journal. The US Department of Commerce, Intel, and TSMC did not immediately respond to Reuters' requests for comment.

In December, U.S. Commerce Secretary Gina Raimondo said she planned to make about a dozen financing awards for semiconductor chips over the next year, including multibillion-dollar announcements that may radically change U.S. chip output.

The first contract, worth more than $35 million, was made in December to a BAE Systems facility in Hampshire to build chips for fighter planes as part of a $39 billion "Chips for America" subsidy scheme approved by the United States.

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