CHIPS Act Boosting Semiconductor Industry with Billions in Payouts to Manufacturers

CHIPS Act Boosting Semiconductor Industry with Billions in Payouts to Manufacturers

After the enactment of the CHIPS⁣ and Science Act, the‍ Biden Administration has initiated the distribution ​of $52.7 billion in funding ​and tax incentives to boost semiconductor production in the⁣ US.​ While ​the funds have not yet been fully disbursed, progress is being made.

In recent months,⁢ the administration has allocated‌ $29 billion to chipmakers like Samsung, TSMC, and Intel.‌ In response, these companies have committed to investing around $300 billion in current and future projects within the ​US, as reported by the White House.

The⁤ latest announcement revealed a $6.14⁣ billion investment in Micron’s new fabrication plants in New York and upgrades elsewhere. Intel‌ leads in promised funds with $8.5 billion allocated so far.

The Department of Commerce, overseeing the CHIPS Act, ⁤has been in negotiations with semiconductor companies to ensure they ⁣meet ⁣specific project milestones before receiving ⁤government payouts.

For instance, TSMC‍ secured $6.6 ​billion in funding under the CHIPS Act, committing ⁣to bringing its‍ advanced technology ⁤to‌ the US and expanding its Arizona site with a third fabrication plant.

An ​artist’s depiction of Micron’s⁣ upcoming fabrication plant ‌in Onondaga ⁣County, NY. Spanning 40 football fields, it is anticipated to create nearly 50,000 jobs in the region.

Micron Technologies

In early 2023, TSMC began constructing its second chip plant near Phoenix, AZ. This project,⁢ part of the CHIPS Act,​ faced ⁢delays pushing its completion to 2025 due to labor challenges,‌ despite being a key component of Biden’s semiconductor incentive program.

2024-05-03 14:51:02
Source from ⁢ www.computerworld.com

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