The Biden administration is expected to award billions of dollars to some of the leading semiconductor manufacturing companies in the world as part of its effort to help the United States compete with China and make its semiconductor factories.
The White House is expected to award billions of dollars in subsidies to Intel, the Taiwan-based TSMC, and other semiconductor manufacturers in the next few weeks, according to the Wall Street Journal.
These subsidies will be part of Biden’s Chips and Science Act, which set aside $53 billion to help chipmakers make new chip manufacturing plants, aka “fabs,” in the United States. These funds will help the companies make more advanced semiconductors, which will be used for high-end technology such as artificial intelligence and military weapons. The factories are also intended to help the U.S. wean off its reliance on foreign chip factories in hopes of improving the U.S. economy and relying less on China.
Industry executives informed on the announcements expect the announcements to arrive before Biden’s March 7 State of the Union address, offering the president some victories to uphold going into the last year of his first term.
The likely recipients are currently working on constructing several semiconductor factories across the U.S. However, some industry officials are worried about the projects being delayed by permitting and other matters, which means that they would not provide Americans U.S.-made chips for years.
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Intel is building factories in Arizona, Ohio, New Mexico, and Oregon and investing more than $43.5 billion into the factories. TSMC, which is considered one of the leading chip manufacturers in the world, is working on building two fabs in Arizona.
The Commerce Department declined to discuss applications or the timing of the announcements. “This is a merit-based process with tough commercial negotiations — CHIPS awards will be entirely dependent upon which projects will advance U.S. economic and national security,” a Commerce spokesperson said.
