US Government to Invest Billions in Advanced Chip Manufacturing
The Biden administration is poised to award billions of dollars in subsidies to major semiconductor companies, including Intel, Taiwan Semiconductor Manufacturing Co (TSMC), and others, to boost advanced chip manufacturing in the United States, according to a recent Wall Street Journal report.
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- Biden administration expected to award billions in semiconductor manufacturing subsidies
- Intel, TSMC, and Samsung are among the top contenders for federal funding
- The goal is to boost domestic advanced chip fabrication capabilities
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US Government to Invest Billions in Advanced Chip Manufacturing
The goal is to incentivize domestic production of cutting-edge semiconductors used in smartphones, AI, national defense systems, and more.
The subsidies will help chipmakers build new foundries and factories in America versus overseas.
Multiple announcements are expected in the coming weeks, with some potentially happening before President Biden’s State of the Union address on March 7th.
The rapid expansion of chip fabrication infrastructure on US soil could dramatically reshape the country’s position in the global semiconductor supply chain.
Intel has several projects in the pipeline across Arizona, Ohio, New Mexico, and Oregon, representing over $43 billion in investments.
TSMC is building two factories in Phoenix, Arizona, carrying a $40 billion price tag.
Samsung also has a $17+ billion facility underway in Texas.
Other companies like Micron, Texas Instruments, and GlobalFoundries are considered top contenders to receive significant government subsidies.
According to the US Department of Commerce, the awards will be based on the commercial benefits and national security impacts proposed by each applicant.
The first grant was recently issued to BAE Systems for a New Hampshire chip fab serving the defense industry.
Securing advanced semiconductor supply chains domestically is crucial for America’s tech leadership and military capabilities.
Outsized investments by the federal government could make the economics much more favorable for chipmakers to manufacture on US shores versus overseas.
With bipartisan support, the “CHIPS and Science Act” passed in 2022 appropriated $39 billion for revitalizing semiconductor research, design, and manufacturing nationwide.
The incoming wave of subsidies marks a major milestone in implementing this national strategy.
The geopolitical tension between China and Taiwan, where most advanced chips are fabricated, has increased the urgency for US chip self-sufficiency.
The subsidies will empower strategic American semiconductor companies to achieve scale and technology levels that enable them to compete with Asian rivals.
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