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The Biden Administration’s Plan to Boost Chip Production in the US

Summary

The Biden administration is set to provide billions of dollars in subsidies to top companies for chip production. The aim of these subsidies is to support the construction of new factories in the US, which will enable the production of […]

The Biden Administration’s Plan to Boost Chip Production in the US

The Biden administration is set to provide billions of dollars in subsidies to top companies for chip production. The aim of these subsidies is to support the construction of new factories in the US, which will enable the production of advanced semiconductors for smartphones, artificial intelligence, and weapon systems. Industry leaders have confirmed that negotiations are underway, and it is expected that some announcements will be made prior to President Biden’s State of the Nation address on March 7th.

Companies such as Intel, which is one of the likely recipients of the subsidies, have projects in multiple states across the US, including Arizona, Ohio, New Mexico, and Oregon, with a combined value of over $43.5 billion. Taiwan Semiconductor Manufacturing Co (TSMC) is also considered one of the potential recipients, as it has two factories under construction near Phoenix, costing a total of $40 billion. Additionally, South Korean company Samsung Electronics has a major project worth $17.3 billion in Texas.

In addition to the aforementioned companies, Micron Technology, Texas Instruments, and GlobalFoundries are also among the key candidates for receiving subsidies. However, the US Department of Commerce has declined to comment on media reports and has not disclosed the potential candidates.

It is evident that the allocation of subsidies will depend on which projects will contribute the most to the economic and national security of the United States. The Biden administration is focusing on strengthening domestic chip production as a crucial competitive sector, not only in a technological context but also in a national context. These subsidies are expected to stimulate the development of the domestic technology industry and secure America’s position in the global semiconductor market.

Frequently Asked Questions (FAQ)

1. What is the purpose of providing subsidies to top chip production companies?

The purpose of providing subsidies to top companies is to support the construction of new factories in the US for the production of advanced semiconductors for smartphones, artificial intelligence, and weapon systems.

2. Which companies are the main candidates for receiving subsidies?

Companies such as Intel, Taiwan Semiconductor Manufacturing Co (TSMC), Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundries are among the main candidates for receiving subsidies.

3. What are the project values of the companies that are candidates for subsidies?

Intel has projects in multiple states across the US with a combined value of over $43.5 billion. TSMC has two factories under construction near Phoenix, costing a total of $40 billion. Samsung Electronics has a project worth $17.3 billion in Texas.

4. Does the US Department of Commerce disclose potential candidates for subsidies?

The US Department of Commerce has declined to comment on media reports and has not disclosed potential candidates.

5. How will the candidates for subsidies be selected?

The allocation of subsidies will depend on which projects will contribute the most to the economic and national security of the United States.

Definitions:

– Subsidies: Financial assistance provided by the government to specific companies or industries to support their activities or stimulate a specific sector of the economy.

– Semiconductor: A material that has electrical conductivity between that of a conductor (such as metal) and an insulator (such as glass). Semiconductors are used in the production of electronic components such as chips.

Related links:
– [Intel](https://www.intel.com)
– [Taiwan Semiconductor Manufacturing Co (TSMC)](https://www.tsmc.com)
– [Samsung Electronics](https://www.samsung.com)
– [Micron Technology](https://www.micron.com)
– [Texas Instruments](https://www.ti.com)
– [GlobalFoundries](https://www.globalfoundries.com)