Friday, March 1, 2024

The United States will inject billions of advanced chips

  • The subsidies seek to boost US production of advanced chips for key technologies such as smartphones and weapons systems.
  • The Biden administration plans to provide billions in subsidies to major semiconductor manufacturers such as Intel and TSMC.
  • This plan is part of the “Chips for America” ​​program, which will transform the US semiconductor industry.

The Biden administration plans to give billions of dollars in subsidies to major semiconductor companies, including Intel (INTC) and Taiwan Semiconductor Manufacturing Co. (TSM), in the coming weeks to help build new factories in the United States, The Wall Street Journal reported Saturday.

The future announcements are objectively boosting advanced semiconductor manufacturing that powers smartphones, artificial intelligence, and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.

Some announcements are expected to come ahead of US President Joe Biden’s State of the Union address on March 7, the WSJ report added.

Investment projects in semiconductors

Among those likely to receive the subsidies, Intel has projects underway in Arizona, Ohio, New Mexico, and Oregon that will cost more than $43.5 billion, the Journal said.

TSMC is building two plants near Phoenix for a total investment of $40 billion. South Korea’s Samsung Electronics, also a contender, has a $17.3 billion project in Texas.

Micron Technology (MU), Texas Instruments (TXN) and GlobalFoundries (GFS) are among the other top contenders, the WSJ said, citing industry executives.

The US Commerce Department, Intel, and TSMC did not immediately respond to Reuters’ request for comment.

Impact on US chip production

In December 2023, US Commerce Secretary Gina Raimondo said she would offer about a dozen semiconductor subsidies over the next year, including multibillion-dollar announcements that could change production. on the US chip.

The first subsidy was announced in December, of more than $35 million to a BAE Systems facility in Hampshire to produce chips for fighter jets, part of a subsidy program. “Chips for America” of the $39 billion approved by the US Congress by 2022.

World Nation News Desk
World Nation News Desk
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