The Biden administration is taking significant steps to boost semiconductor manufacturing in the U.S. by providing billions in subsidies to chip companies. The bipartisan CHIPS and Science Act signed by President Joe Biden in 2022 includes a $280 billion package, with $52 billion specifically allocated for semiconductors. This initiative aims to reduce reliance on foreign chip manufacturers and strengthen national security.
Intel, a semiconductor pioneer, has received the largest amount of funding so far, with $8.5 billion in direct government funding and $11 billion in federal loans. The company plans to invest over $100 billion in building chipmaking sites in Arizona, New Mexico, Ohio, and Oregon, creating thousands of jobs in the process.
Taiwan Semiconductor Manufacturing Company (TSMC) received $6.6 billion in grants and $5 billion in loans to support its chipmaking hub in Phoenix, Arizona. This investment will help the U.S. produce 20% of the world’s advanced chips by 2030. Similarly, Samsung received $6.4 billion to expand its chip facility in Austin and build a new hub in Taylor, Texas, further boosting the U.S.’s chip production capabilities.
Micron, GlobalFoundries, Microchip Technology, Polar Semiconductor, and BAE Systems also received funding under the Chips Act to support their chip manufacturing and research efforts. These investments will not only create jobs but also enhance the U.S.’s technological capabilities and competitiveness in the global semiconductor market.
Overall, the government’s support for chip companies through the Chips Act is a strategic move to strengthen the domestic semiconductor industry, reduce reliance on foreign suppliers, and drive innovation in advanced chip technologies. This initiative is crucial for national security, economic growth, and technological advancement in the U.S.