Where the CHIPS Act money has gone

Jun 07, 2024 07:00 PM - 5 months ago 57899

Since nan transition of nan CHIPS and Science Act past August, 8 companies person already received much than half of nan planned authorities nonstop funding.

These companies person collectively received $29.34 cardinal successful backing done nan CHIPS Act for semiconductor factories crossed nan country. The law, a $280 cardinal package to support invention successful nan US, includes $52 cardinal successful subsidies for semiconductor manufacturing and was passed past year. 

These investments only interest nan building aliases description of semiconductor fabrication accommodation and do not see authorities backing for different spot investigation facilities.

As of writing, Intel, Micron, Global Foundries, Polar Semiconductor, Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, BAE Systems, and Microchip Technology person been nan nonstop beneficiaries of nan law. 

These see projects for illustration Intel’s factories successful Arizona, New Mexico, and Oregon, the $20 cardinal fab successful Ohio, and Micron’s $ 100 cardinal works successful Syracuse, New York, to build representation chips.  

Intel received nan biggest nonstop finance done nan CHIPS Act, pinch $8.5 cardinal for its semiconductor projects. TSMC received $6.6 cardinal successful funding, while Samsung rounded retired nan apical 3 pinch $6.4 cardinal from nan US government. 

The CHIPS Act is intended to restart nan US semiconductor manufacture and commencement competing against Chinese power successful nan spot manufacturing space. However, nan magnitude group speech to jumpstart nan manufacture cannot beryllium nan only root of superior to bring nan US up to speed, according to Commerce Secretary Gina Raimondo, arsenic nan extremity of nan rule “was ne'er to supply nan semiconductor manufacture pinch each dollar it requests.”

Raimondo has said leading-edge spot manufacturers person asked for $70 billion successful backing for spot fabrication, much than nan authorities initially expected to spend. She said nan section is prioritizing projects that will beryllium operational by 2030 and immoderate “very strong” proposals from companies whitethorn ne'er get backing done nan act.

Fabricating chips is an costly affair. TSMC, 1 of nan CHIPS Act beneficiaries, earmarked $44 cardinal successful 2022, up from $31 cardinal successful 2021, just to grow its chip-making capacity. 

The Semiconductor Industry Association says successful an email to The Verge that nan manufacture garnered much than $450 cardinal successful backstage investments aft nan announcement of nan CHIPS Act, and it expects it to turn moreover further. 

Demand for chips has grown arsenic generative AI models, which are chiefly trained utilizing powerful chips, person besides grown successful prominence. The US wants to commencement providing much high-powered chips and moreover commencement making next-generation semiconductors. The Biden management announced successful February that it will besides commencement funding investigation into substrate packaging technologies, which would thief create much leading-edge semiconductors.

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