The announcement is expected to be made before the US president’s State of the Union address in March as the administration “seeks to showcase its economic successes ahead of the 2024 presidential election.”
Industry experts believe the subsidies will help kick-start construction of new chip factories, which could take several years due to permitting and other delays. Intel is expected to receive a significant portion of the funding. The company plans to invest more than $43 billion in new factories in Arizona, Ohio, New Mexico and Oregon.
TSMC, another major chipmaker, will also receive a significant subsidy to build a facility in Phoenix, Arizona. The company already has a factory in Arizona.
Top candidates for subsidies include Samsung Electronics, Micron Technology and GlobalFoundries.
But some critics have expressed concern that the subsidies will not be enough to cover the cost of building new factories. They also worry that subsidies could lead to higher prices for consumers.
Source: Ferra
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