Semiconductor Boost: Biden Administration’s Subsidies Drive U.S. Manufacturing
In the imminent weeks, the Biden administration is slated to extend substantial subsidies, totaling billions, to major semiconductor entities like Intel and Taiwan Semiconductor Manufacturing Co (TSMC). This move is geared towards propelling the establishment of new semiconductor facilities in the United States, with a specific focus on pioneering chip manufacturing essential for smartphones, artificial intelligence, and defense systems.
Sources from the Wall Street Journal, comprised of industry insiders familiar with the ongoing negotiations, anticipate official announcements preceding President Biden’s upcoming State of the Union address on March 7. Intel emerges as a probable subsidy recipient, actively involved in diverse projects spanning Arizona, Ohio, New Mexico, and Oregon, accruing a cumulative cost exceeding $43.5 billion. TSMC, concurrently constructing two facilities near Phoenix with a combined investment of $40 billion, positions itself as another heavyweight contender. Samsung Electronics, engaged in a $17.3 billion project in Texas, likewise features prominently.
Other notable contenders, per insights gleaned from industry executives highlighted by the WSJ, encompass Micron Technology, Texas Instruments, and GlobalFoundries. However, the U.S. Department of Commerce remains tight-lipped on potential applicants, declining to comment on the temporal aspects of these reports.
A spokesperson from the Commerce Department underscores the merit-driven nature of the subsidy allocation process. They emphasize that CHIPS program awards hinge upon projects significantly advancing both U.S. economic interests and national security. TSMC opted not to provide a comment, and Intel’s response to inquiries remains pending.
Back in December of the preceding year, U.S. Commerce Secretary Gina Raimondo unveiled intentions to roll out roughly a dozen funding awards for semiconductor chips within the next year. These multi-billion-dollar announcements, integral to the “Chips for America” subsidy program ratified by the U.S. Congress in 2022, seek to substantively reshape the U.S. chip production landscape. The inaugural award, surpassing $35 million, was earmarked for a BAE Systems facility in Hampshire, dedicated to manufacturing chips for fighter planes.
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