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US Chip-Funding: Major Beneficiaries to be Named Soon
The US “Chip Law,” formally enacted in 2022, so far only designated two minor recipients of subsidies for microchip production. Major contenders have not yet been named. However, U.S. Commerce Secretary Gina Raimondo has vowed to rectify this oversight within six to eight weeks.
Promising Development in Microchip Production
Raimondo’s statement came in an interview with agency Reuters, “We are in the middle of some truly tough, high-stakes negotiations with these companies. In the next six to eight weeks, you’ll hear several new announcements. That’s what we’re aiming for.” Without naming direct contenders for subsidies, Raimondo referred to TSMC, Samsung, and Intel’s plans to build factories in the USA, stating these projects displayed a complexity not seen before in the country.
Engaged in High-Stakes Negotiations
Raimondo further revealed that she regularly negotiates directly with the CEOs of chip-making enterprises. She does not believe that the government is lagging in allocating subsidies, whose total sum will amount to $39 billion, exclusive of funds directed towards research activities.
Investing in Chip Production
Funds that authorities plan to direct towards building microchip-producing establishments in the US can cover up to 35% of the companies’ capex. Some of this money will be provided on a reimbursement basis. Furthermore, the US government might act as a guarantor for credit loans for industry companies planning to construct modern establishments in the country. The US Secretary of Commerce is confident in maintaining high demand for chips: “Artificial intelligence will raise demand to an unprecedented level.”