Relieve production expansion pressure, TSMC, Samsung, and Intel will receive subsidies under the US chip bill in March

Source: Technology News

    Recently, media reports have shown that the United States will provide first quarter subsidy funds under the CHIPS Act, which will bring significant benefits to Intel, Samsung Electronics, and TSMC, which have already invested in local businesses.

    The United States is expected to announce the details of semiconductor funding subsidies under the CHIPS Act on February 29th, and its subsidy funds may be disbursed in March. The expected scope of subsidies will include semiconductors used in fields such as smartphones and artificial intelligence.

    In fact, the CHIPS Act was enacted by the United States to promote local semiconductor investment by related companies. According to the bill, each project can receive a maximum funding subsidy of $3 billion, equivalent to 15% of the total project cost. In addition, the bill‘s support for semiconductor investment includes not only funding, but also projects such as loans, loan guarantees, and tax exemptions, providing a total amount of $39 billion.

    The report emphasizes that although the US government passed the CHIPS Act in 2022, which is expected to cost $53 billion, only two companies currently receive funding subsidies from the CHIPS Act, despite claims that more than 170 companies have applied.

    For wafer foundries with global capabilities to produce advanced processes, including TSMC, Intel, and Samsung, all three companies have announced investments in new semiconductor production lines in the United States. Among them, TSMC is building two wafer fabs near Phoenix, Arizona, with an investment amount of up to 40 billion US dollars. Based on this amount, it is estimated that TSMC will receive approximately billions of dollars in funding subsidies from the US government.

    Intel is also building semiconductor production lines worth over $43.5 billion in Arizona, Ohio, New Mexico, and Oregon in the United States. Based on this amount, Intel is also expected to receive billions of dollars in US government funding subsidies.

    Samsung Electronics is currently building a $17.3 billion production line near Dallas, Texas, and is expected to receive up to $3 billion in funding from the US government.