US to announce billions in subsidies for advanced chips- WSJ By Reuters

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<span>© Reuters. Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo</span><br />
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<p>(Reuters) -The Biden administration is expected to award billions of dollars in subsidies to top semiconductor companies including Intel (NASDAQ:), and Taiwan Semiconductor Manufacturing Co in the coming weeks to help build new factories in the United States, the Wall Street Journal reported on Saturday.</p>
<p>The forthcoming announcements are aimed at kick-starting manufacturing of advanced semiconductors that power smartphones, artificial intelligence and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.</p>
<p>The executives expect some announcements to come before U.S. President Joe Biden’s State of the Union address on March 7, the WSJ report added.</p>
<p>Among the likely recipients of the subsidies, Intel has projects under way in Arizona, Ohio, New Mexico and Oregon that will cost more than $43.5 billion, the paper said. </p>
<p>Another likely recipient, Taiwan Semiconductor Manufacturing Co (TSMC) has two plants under construction near Phoenix for a total investment of $40 billion. South Korea’s Samsung Electronics (KS:), also a contender, has a $17.3 billion project in Texas.</p>
<p>Micron Technology (NASDAQ:), Texas Instruments (NASDAQ:) and GlobalFoundries (NASDAQ:) count among other top contenders, WSJ said citing industry executives.</p>
<p>The U.S. Department of Commerce, Intel, and TSMC did not immediately respond to Reuters request for comment. </p>
<p>In December last year, U.S. Commerce Secretary Gina Raimondo said she would make around a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar announcements that could drastically reshape U.S. chip production.</p>
<p>The first award was announced in December, of over $35 million to a BAE Systems (LON:) facility in Hampshire to produce chips for fighter planes, part of a $39 billion “Chips for America” subsidy program approved by the U.S. Congress in 2022.</p>
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