US to announce billions in subsidies for superior chips -WSJ By Reuters

© Reuters. Semiconductor chips are seen on a printed circuit board on this illustration image taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photograph

(Reuters) -President Joe Biden’s administration is predicted to award billions of {dollars} in subsidies in coming weeks to prime semiconductor firms together with Intel (NASDAQ:) and Taiwan Semiconductor Manufacturing Co to assist construct new factories within the U.S., the Wall Road Journal reported on Saturday.

The forthcoming bulletins intention to kick-start manufacturing of superior semiconductors that energy smartphones, synthetic intelligence, and weapons methods, the WSJ reported, citing trade executives conversant in the negotiations.

The executives anticipate some bulletins to come back earlier than Biden’s State of the Union tackle on March 7, in keeping with the report.

Among the many seemingly recipients of the subsidies, Intel has tasks underway in Arizona, Ohio, New Mexico, and Oregon that can price greater than $43.5 billion, the paper stated.

One other seemingly recipient, Taiwan Semiconductor Manufacturing Co (TSMC) has two vegetation underneath building close to Phoenix for a complete funding of $40 billion. South Korea’s Samsung Electronics (KS:), additionally a contender, has a $17.3 billion undertaking in Texas.

Micron Expertise (NASDAQ:), Texas Devices (NASDAQ:), and GlobalFoundries (NASDAQ:) rely amongst different prime contenders, WSJ added citing trade executives.

The U.S. Division of Commerce refused to debate any potential candidates and declined to touch upon any timing stories.

“It is a merit-based course of with robust business negotiations — CHIPS awards will likely be totally dependent upon which tasks will advance US financial and nationwide safety,” a division spokesperson stated to Reuters citing a Commerce official.

TSMC declined to remark whereas Intel didn’t reply to a request.

In December final yr, U.S. Commerce Secretary Gina Raimondo stated she would make round a dozen funding awards for semiconductor chips throughout the subsequent yr, together with multi-billion greenback bulletins that might drastically reshape U.S. chip manufacturing.

The primary award was introduced in December, of over $35 million to a BAE Methods (LON:) facility in Hampshire to provide chips for fighter planes, a part of a $39 billion “Chips for America” subsidy program authorized by the U.S. Congress in 2022.

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