The US is expected to reveal plans for providing significant financial support for the development of advanced semiconductor chips, according to a report from the Wall Street Journal.
According to a report from The Wall Street Journal on Saturday, the Biden administration is likely to provide large sums of money as subsidies to leading semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Company. This is intended to support their efforts in constructing new factories within the United States.
According to industry executives who are familiar with the discussions, The Wall Street Journal reported that the upcoming announcements have the goal of initiating the production of advanced semiconductors used in smartphones, artificial intelligence, and military weapons systems.
According to a report from The WSJ, executives anticipate certain announcements to be made prior to President Joe Biden’s State of the Union address on March 7.
According to the paper, Intel is expected to receive subsidies for its projects in Arizona, Ohio, New Mexico, and Oregon, which have an estimated combined cost of over $43.5 billion.
Another likely recipient, Taiwan Semiconductor Manufacturing Company has two plants under construction 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.
According to industry executives, The Wall Street Journal reported that Micron Technology, Texas Instruments, and GlobalFoundries are among the leading competitors.
Reuters has reached out to the U.S. Department of Commerce, Intel, and TSMC for comment but has not received an immediate response.
Last year in December, Gina Raimondo, the Commerce Secretary of the U.S., announced that she plans to grant funding for semiconductor chips in the coming year. These awards may reach billions of dollars and could greatly impact the production of chips in the U.S.
In December, the initial prize was revealed to be more than $35 million awarded to a BAE Systems facility in New Hampshire. This funding will be used to manufacture chips for fighter planes as part of the “Chips for America” subsidy program, which was approved by the U.S. Congress for $39 billion in 2022.
Source: voanews.com
