The U.S. government is expected to pay the first-quarter subsidies under the CHIPS Act, or Semiconductor Support Act, signaling significant benefits for Intel, Samsung Electronics, and Taiwan’s TSMC, all of which have invested in local operations. According to foreign media reports on Jan. 29, the Joe Biden administration is anticipated to soon announce the semiconductor subsidy details, with March being the likely time frame. Subsidies are expected to be allocated for semiconductors used in smartphones, artificial intelligence, and weaponry.
The CHIPS Act was established by the U.S. to promote domestic semiconductor investment. Under this act, each project can receive support of up to US$3 billion, which amounts to 15% of the total project cost. The program, including grants, loans, loan guarantees, and tax deductions, totals US$39 billion.
Although the U.S. government passed the CHIPS Act in 2022, a US$53 billion initiative, only two grants have been reported distributed. Over 170 companies are said to have applied for this subsidy.
The official announcement from the U.S. government is expected to accelerate investments by global semiconductor companies in the region. Leading companies include Intel, TSMC, Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundries.
Samsung Electronics is currently working on a US$17.3 billion project near Dallas, Texas. Intel is progressing projects worth more than US$43.5 billion in Arizona, Ohio, New Mexico, and Oregon. TSMC is building two fabs near Phoenix, Arizona, having announced an investment of US$40 billion.