Newsearay Exclusive: Major Investments in Advanced Semiconductors Expected to be Announced
In an effort to boost the production of advanced semiconductors that drive smartphones, artificial intelligence, and weapons systems, a series of significant announcements are anticipated, according to industry executives familiar with the negotiations. These announcements are expected to be made before U.S. President Joe Biden’s State of the Union address on March 7.
Among the likely beneficiaries of these subsidies, Intel is currently undertaking projects in Arizona, Ohio, New Mexico, and Oregon, with an estimated cost exceeding $43.5 billion. Taiwan Semiconductor Manufacturing Company, another potential recipient, is constructing two plants near Phoenix, amounting to a total investment of $40 billion. Samsung Electronics, from South Korea, is also a strong contender, with a $17.3 billion project in Texas.
Additional top contenders, as reported by industry executives, include Micron Technology, Texas Instruments, and GlobalFoundries. However, the U.S. Department of Commerce, Intel, and Taiwan Semiconductor Manufacturing Company have not yet responded to requests for comment from Reuters.
Last December, U.S. Commerce Secretary Gina Raimondo announced plans to allocate around a dozen funding awards for semiconductor chips within the next year. These multibillion-dollar investments have the potential to significantly reshape chip production in the United States. The first award, totaling over $35 million, was recently granted to BAE Systems in New Hampshire as part of the $39 billion “Chips for America” subsidy program approved by the U.S. Congress in 2022.
The US government is expected to announce subsidies for advanced semiconductor manufacturing, benefiting companies like Intel, Taiwan Semiconductor Manufacturing Company, and Samsung Electronics. These subsidies aim to boost the production of chips used in smartphones, AI, and weapons systems. The announcements may be made before President Biden’s State of the Union address on March 7. The funding awards are part of a multibillion-dollar program to reshape US chip production.
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