Global semiconductor companies such as Samsung Electronics, Intel and TSMC seem to be very concerned about how these subsidies will be distributed as the US Congress recently passed the Chip Act 2022 providing $52 billion to support the US semiconductor industry, BusinessKorea reported on August 1.
Photo source: BusinessKorea
Notes: In April 2021, President Joe & Middot; Joe Biden holds up a semiconductor chip during a video conference on semiconductors at the White House.
The U.S. House of Representatives passed the Chip and Science Act by a vote of 243-187 on July 28 (local time), the report said. The bill had been approved by the Senate the day before and was approved by President Joe Middot. If Biden signs it, it will become a law.
The bill's centerpiece is a $280 billion investment to develop America's high-tech industry.
In total, $52 billion will go to the semiconductor industry, including $39 billion for semiconductor facilities in the United States, $11 billion for research and workforce development, and $2 billion for defense-related semiconductor chip manufacturing. Companies that build semiconductor plants in the United States qualify for a 25 percent tax break. At the same time, spending on high-tech research projects has increased dramatically. For example, $200 billion has been allocated to the development of scientific research.
Samsung Electronics is expected to receive federal subsidies for its $17 billion contract factory in Tyler, Texas, the report said. In addition, SK Hynix plans to invest $15 billion to build a memory semiconductor packaging plant and a semiconductor R&D center in the United States. TSMC announced plans to invest $12 billion in Arizona to make 5nm chips.
According to foreign media reports, there are growing concerns that Intel may use its huge financial resources to lobby the US Congress and take a chunk of the "cake" from it. In the early stages of the bill's discussion, Intel submitted its views to the U.S. government on the need to provide financial support primarily to U.S. chipmakers rather than non-U.S. companies.
However, according to a Commerce Department document released in March, Samsung Electronics submitted an opinion that the U.S. should also support non-U.S. companies and weigh their positive impact on the U.S. economy.
Earlier this year, Intel laid out plans to invest at least $20 billion in the Ohio plant, but the delay in passing the chip bill has indefinitely delayed a planned groundbreaking ceremony. Since then, with the bill passed on July 28, Intel Chief Executive Pat Gelsinger has again expressed a desire to start construction on the Ohio plant. (Proofread/Wu Shouzhe)