Concerns are growing that the implementation of investment subsidies promised by the U.S. government to domestic semiconductor companies like Samsung Electronics may be delayed or reduced.
According to the business community and semiconductor industry sources on Dec. 4, Samsung Electronics’ U.S. branch hosted a reception last month in Washington, D.C., inviting bipartisan members of both the Senate and the House to analyze the impact of the semiconductor industry. The event was attended by Democratic Senator Mark Kelly and House Representatives Michael McCaul (Republican) and Raja Krishnamoorthi (Democrat).
Samsung Electronics’ U.S. branch emphasized that “Samsung Semiconductors has executed investments totaling US$47 billion over 30 years. The decision to invest ahead of the Semiconductor Support Act decision was due to trust in the U.S. Congress and Administration.” The hosting of this event in the U.S. appears to be indirect pressure on the U.S. government to fulfill its promised subsidy execution.
The U.S. government had promised a total of US$52.7 billion in subsidies to companies building semiconductor plants in the U.S. as part of the Semiconductor Support Act. However, early last month, reports surfaced that “the U.S. government might prepay up to US$4 billion in subsidies to Intel for the production of military-use semiconductors,” raising fears that the policy might shift towards favoring American companies, potentially reducing the subsidy amount or delaying its disbursement. Additionally, with the U.S. presidential election approaching next year, there are analyses suggesting that semiconductor subsidies could become a political issue.