Billions in chip subsidies for Intel, Taiwan Semi, and more expected to be announced by Biden

Billions in chip subsidies for Intel: According to the most recent report from The Wall Street Journal, the Biden administration is preparing to distribute billions of dollars in substantial subsidies to prominent semiconductor companies. Tech titans such as Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) are anticipated to be among the beneficiaries, with the initiative promoting the development of state-of-the-art semiconductor facilities in the United States.

The imminent pronouncements are of great strategic importance as they seek to stimulate the manufacturing of advanced semiconductors, which are indispensable in numerous fields, including artificial intelligence, smartphone functionality, and the operation of sophisticated weapon systems. According to the WSJ, the insights were obtained from industry insiders who were intimately engaged in the negotiation process.

Industry leaders anticipate the disclosure of crucial information before the March 7 State of the Union address by U.S. President Joe Biden, according to sources who have been in communication with the Wall Street Journal.

Billions in chip subsidies for Intel and others:

Intel, which is presently engaged in massive construction projects in Oregon, Ohio, Arizona, and New Mexico, with a combined cost surpassing $43.5 billion, emerges as a prominent candidate for these subsidies.

Similarly, Taiwan Semiconductor Manufacturing Co. (TSMC), which is currently constructing two $40 billion-worth facilities near Phoenix, stands to gain.

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The South Korean behemoth Samsung Electronics is working on a project in Texas that is equally significant and costs $17.3 billion.

According to industry sources cited by the WSJ, the pool of potential subsidy recipients is not limited to these titans but also includes Texas Instruments, GlobalFoundries, and Micron Technology, among others.

This development is related to Gina Raimondo’s December announcement. Raimondo pledged to fund 12 semiconductor processor grants next year. These billions of dollars in grants could change US chip production.

The $35 million preliminary payment was revealed in December for a BAE Systems Hampshire facility that makes fighter aircraft semiconductors. The US Congress authorized the $39 billion “Chips for America” subsidy program in 2022.

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