The Biden administration will provide billions of dollars in subsidies in the coming weeks to leading semiconductor companies such as Intel and Taiwan Semiconductor Manufacturing Co. to help build new chip factories. News Reuters.
Citing unnamed sources in the news, it is said that the Biden administration is taking such steps with the aim of starting the production of high-quality semiconductors used in smartphones, artificial intelligence and weapons systems. Executives expect several announcements to come before President Joe Biden’s State of the Union address on March 7.
The Wall Street Journal reported that Intel could receive subsidies for advanced chip production. The company has projects underway in Arizona, Ohio, New Mexico and Oregon. Those projects will cost the company more than $43.5 billion.
Taiwan Semiconductor Manufacturing Company (TSMC) may also receive subsidies. The company is currently building two plants near Phoenix. The total investment of the company in those two plants is 40 billion dollars. Besides, South Korean company Samsung Electronics is also likely to get subsidy. The company has a $17.3 billion project in Texas.
Besides Micron Technology, Texas Instruments and GlobalFoundries, several top competitors may also receive subsidies, the WSJ said.
