A lot of money will be given by the Biden government to help semiconductor companies build new factories. These companies include Intel, Taiwan Semiconductor, Micron, Texas Instruments, and GlobalFoundries.
The incentives are part of the $53 billion Chips Act, which gives tax breaks to companies that make semiconductors in the United States. The goal is to increase America’s share of the global semiconductor market and make the country less dependent on Asia.
A story from the Wall Street Journal says that the announcements will be rough and that the money will be given out in stages. The funding should be made public before Biden’s speech at the State of the Union on March 7, 2024. The news has been revealed by people in the industry who know about the talks.
Because of the COVID-19 pandemic, there has been a world shortage of semiconductors. This has caused a huge rise in demand for electronics.
The shortage has had an effect on many fields, such as the auto and consumer electronics businesses. A lot of people think that the subsidies will help the US make more semiconductors and depend less on foreign providers.
Since it became law in 2020, the Chips Act has had more than 460 companies send in statements of interest to get money. The act gives tax breaks for research and development as well as the tools and facilities used to make semiconductors.
People think that the handouts will make the US economy stronger and create new jobs. It is important for the US economy that the semiconductor industry stays strong, and the funding should help the US keep its top spot in the industry.
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The news of the subsidies comes at a time when China is becoming a bigger threat to the US in the semiconductor business. China has put a lot of money into the business, and its companies are quickly increasing the amount they can make.
The incentives should make it easier for US semiconductor companies to compete with Chinese ones and keep their top spot in the industry.
To help the semiconductor business grow, the US government has done a number of things, such as funding research and development and offering tax breaks.
To sum up, the Biden administration’s move to give billions of dollars in tax breaks to semiconductor companies for building new factories is a big step toward growing the US semiconductor industry.
It is hoped that the handouts will make the economy stronger, create new jobs, and make the country less reliant on imports. The US government’s efforts to boost the semiconductor business are very important if the US wants to stay ahead of China in this field.