US to announce billions in subsidies for advanced 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 Picture

(Reuters) -President Joe Biden’s administration is anticipated 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 goal to kick-start manufacturing of superior semiconductors that energy smartphones, synthetic intelligence, and weapons programs, the WSJ reported, citing trade executives acquainted with the negotiations.

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

Among the many probably recipients of the subsidies, Intel has initiatives underway in Arizona, Ohio, New Mexico, and Oregon that may price greater than $43.5 billion, the paper mentioned.

One other probably recipient, Taiwan Semiconductor Manufacturing Co (TSMC) has two crops beneath 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 mission 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 studies.

“It is a merit-based course of with robust industrial negotiations — CHIPS awards will likely be solely dependent upon which initiatives will advance US financial and nationwide safety,” a division spokesperson mentioned 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 mentioned she would make round a dozen funding awards for semiconductor chips throughout the subsequent yr, together with multi-billion greenback bulletins that would 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 permitted by the U.S. Congress in 2022.