Biden Administration Set to Grant Billions in Subsidies to Semiconductor Giants for U.S. Manufacturing Boost

According to the Wall Street Journal’s report on Saturday, the Biden administration is anticipated to allocate billions of dollars in subsidies to leading semiconductor firms, such as Intel and Taiwan Semiconductor Manufacturing Company (TSMC), to facilitate the construction of new factories within the United States.

The impending announcements are geared towards jump-starting the production of advanced semiconductors essential for powering smartphones, artificial intelligence, and weaponry systems. This insight was provided by industry executives familiar with the negotiations, as reported by the WSJ.

The executives anticipate that some announcements will be made prior to U.S. President Joe Biden’s State of the Union address on March 7, as mentioned in the WSJ report.

Intel, a probable recipient of the subsidies, is currently undertaking projects in Arizona, Ohio, New Mexico, and Oregon, with a total estimated cost exceeding $43.5 billion, as outlined by the paper.

Another likely beneficiary, TSMC, is in the process of constructing two plants near Phoenix, with a combined investment of $40 billion. Additionally, South Korea’s Samsung Electronics, also in contention, is pursuing a $17.3 billion project in Texas.

Micron Technology, Texas Instruments, and GlobalFoundries are among the other top contenders, according to the WSJ, citing industry executives.

In December of the previous year, U.S. Commerce Secretary Gina Raimondo announced her intention to allocate approximately a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar announcements that could significantly alter U.S. chip production.