Semiconductors

TSMC, Samsung May Bag Billions in Subsidies for US Chip Fabs

 

Asian chipmakers Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics are likely candidates for billions of dollars in subsidies to help build their chip fabs in the US, a new report said on Saturday.

The Joe Biden Administration is expected to begin handing out subsidies to top semiconductor companies in the coming weeks as it pushes to kick-start manufacturing of advanced semiconductors at home, according to a report by the Wall Street Journal.

Among the likely recipients of the subsidies, TSMC has two plants under construction near Phoenix for a total investment of $40 billion.

 

Also on AF: US Chip Firms Looking to Invest $8bn in Vietnam, Official Says

 

South Korea’s Samsung Electronics, also a contender, has a $17.3 billion project in Texas.

Intel, Micron Technology, Texas Instruments, and GlobalFoundries count among other top contenders, WSJ said citing industry executives.

The executives expect some announcements to come before US President Joe Biden’s State of the Union address on March 7, the WSJ report added.

US Commerce Secretary Gina Raimondo said in December last year that she would make around a dozen funding awards for semiconductors within the next year.

Those are likely to include multi-billion dollar announcements that could drastically reshape the US’ productions of chips that power smartphones, artificial intelligence and weapons systems.

The first award was announced in December, of over $35 million to a BAE Systems facility in Hampshire to produce chips for fighter planes, part of a $39 billion “Chips for America” subsidy program.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

TSMC Gets China Chip Waiver From US, Eyeing ‘Permanent’ Permit

South Korea’s Samsung, SK Hynix Win US Chip Tech Export Waivers

‘Frustrated’ in US, TSMC Finds Japan Chipmaking a ‘Natural Fit’

TSMC Seeks up to $15 Billion in US CHIPS Act Subsidies

TSMC Drafts in More Taiwan Workers to Speed Up US Fab Build

Arizona Workers Say Building TSMC Factory ‘Worst Job Ever’ – BI

High Cost, ‘Unmanageable’ US Staff Plague TSMC in Arizona – NYT

TSMC’s Tough Standards Could Hit Hunt for US Staff – Fortune

TSMC US Plant Hit With Taiwanese Workers Ban Call – 9to5Mac

China, US Scientists’ Graphene Chip Breakthrough – IndraStra

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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