US prepares to hand out billions more to chip firms
The Biden Administration is set to announce a fresh round of subsidies as part of its USD 53 billion Chips and Science Act.
A new report in the WSJ names Intel, Taiwan Semiconductor Manufacturing Co (TSMC), Micron Technology and Texas Instruments among the recipients of the grants, which will be unveiled over the next few weeks.
The cash will come from the USD 53 billion Chips and Science Act, which became law in 2022. It was conceived to on-shore semiconductor manufacturing back to the US after decades of outsourcing.
To date, just two grants have been awarded. In December, the Commerce Department pledged USD 35 million to defence firm BAE Systems to boost its chip-making output for military aircraft. Shortly after it pledged USD 162 million to Microchip Technology to improve its plants in Colorado Springs, Colorado and Gresham, Oregon.
The WSJ suggests that there were 170 applications for grants, but that progress has been slow thanks to red tape and worker shortages. However, the government claims that the promise of government support has spurred the private sector to invest more than USD 200 billion since the Act was introduced.
The WSJ says Biden will make more announcements at his State of the Union address on March 7.