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US to announce billions in subsidies for advanced chips -WSJ

Published 01/27/2024, 05:55 AM
Updated 01/27/2024, 09:00 PM
© Reuters. Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

(Reuters) -President Joe Biden's administration is expected to award billions of dollars in subsidies in coming weeks to top semiconductor companies including Intel (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Co to help build new factories in the U.S., the Wall Street Journal reported on Saturday.

The forthcoming announcements aim to kick-start manufacturing of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.

The executives expect some announcements to come before Biden's State of the Union address on March 7, according to the report.

Among the likely recipients of the subsidies, Intel has projects underway in Arizona, Ohio, New Mexico, and Oregon that will cost more than $43.5 billion, the paper said.

Another likely recipient, Taiwan Semiconductor Manufacturing Co (TSMC) has two plants under construction near Phoenix for a total investment of $40 billion. South Korea's Samsung Electronics (KS:005930), also a contender, has a $17.3 billion project in Texas.

Micron Technology (NASDAQ:MU), Texas Instruments (NASDAQ:TXN), and GlobalFoundries (NASDAQ:GFS) count among other top contenders, WSJ added citing industry executives.

The U.S. Department of Commerce refused to discuss any potential applicants and declined to 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 said to Reuters citing a Commerce official.

TSMC declined to comment while Intel did not respond to a request.

In December last year, U.S. Commerce Secretary Gina Raimondo said she would make around a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar announcements that could drastically reshape U.S. chip production.

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The first award was announced in December, of over $35 million to a BAE Systems (LON:BAES) facility in Hampshire to produce chips for fighter planes, part of a $39 billion "Chips for America" subsidy program approved by the U.S. Congress in 2022.

Latest comments

What about the border Joe Bidumb?
Another sneaky move for Joe to buy votes.  Question, really be asked more money spent on corporations??? He and Powell already do that with the markets. Joe what about the people ???!!!! We need BILLIONS of dollars for citizens, yes the legal citizens to live in this country. Wow, all the money spent by Joe,  UKRAINE< ISRAEL SO SO SAD. In 4 years he has not done anything for American Citizens
Wow, an illiterate rant. If you’re going to live in my country then learn punctuation and grammar.
It's sad that our own government chased away the chip making to other countries and now 25-30 years later we're spending billions to bring it back
The government chased away chip manufacturing? I don't think you know what you are talking about
You do your homework. I did mine.
Good for you! Did mommy give you a juice cup?
Billions of subsidies to big profitable corporation for them to lay off Americans thanks to AI......
Enriching the rich corporate America
they already making billions yet still give them billions
China does it, it's spying and cyber security according to US
It puts the USA at risk to have these kinds of advanced chips only manufactured overseas. This is another smart move by ol' sleepy Joe to better secure America's future.
Tell me more. What regulations should be reduced that would achieve the same goal of bringing advanced chip manufacturing to American shores?
Another sneaky move for Joe to buy votes.  Question, really be asked more money spent on corporations??? Joe what about the people ???!!!! We need BILLIONS of dollars for citizens, yes the legal citizens to live in this country. Wow, all the money spent by Joe,  UKRAINE< ISRAEL<ILLEGAL IMMIGRANTS  SO SO SAD. In 4 years he has not done anything for American Citizens
It sounds like you don't want the US building its own advanced chips.
Lolol billions of profit and the US government is giving them more money. I thought state ownership and support is bad, it's socialism/communism
They are definitely in need 😂😂
Yup ..these big corporate America needs the subsidises so that they can continue laying off more Americans for more revenues ...... thanks to AI
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