2024-01-28 22:39:00
The Department of Commerce has so far received requests from approximately 460 companies for the initial budget of 39 billion dollars, but so far the funding has not yet been delivered to the industry
Last Saturday, January 27, 2024, the United States government announced a plan to allocate billions of dollars in grants to leading semiconductor manufacturing companies, such as Intel and TSMC, to help build new factories for advanced chips in the United States. This is on the anniversary of the start of the implementation of the American Chip and Science Act.
The Chips and Science Act (Chips and Science Act), enacted by Congress two years ago and recently a year since its final approval, allocated almost $53 billion in grants to semiconductor manufacturers in the United States, as well as an additional budget of $200 billion for research in fields such as artificial intelligence, quantum computing and other advanced technologies. The law also limits the grantees’ ability to expand semiconductor production in China or other countries of interest. American companies, including memory maker Micron, have already announced expansion plans that will support the grants they expect to receive from the new law
The US Department of Commerce announced that over 460 companies have expressed interest in receiving government funding as part of the competition with China in the field of science and technology. The law also includes a 25% tax credit for the construction of chip factories, the value of which is estimated at $24 billion. The Intel company also expressed Support for government moves.
Due to the law, many chip companies have already announced investments of $166 billion in chip and electronics manufacturing in the US over the past year, which indicates the commitment of the private sector to strengthen the semiconductor industry in the United States.
The Commerce Department began accepting applications in June for a $39 billion funding program for U.S. semiconductor manufacturing, including chip manufacturing equipment and materials, but has not yet issued the grants. The law also includes a 25 percent tax credit for building chip factories, worth $24 billion.
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