US Secretary of Commerce Gina Raimondo on Monday said that most chips companies seeking government subsidies would get significantly less than they have sought, as the US government received requests for more than double the US$28 billion it plans to award.
More than 600 companies in leading-edge chips manufacturing — which include Taiwan Semiconductor Manufacturing Co (台積電), Intel Corp and Samsung Electronics Co — have requested more than US$70 billion, Raimondo said.
The department is engaged in tough ongoing negotiations with individual companies, she said.
Photo: Reuters
She said her conversations with chip company CEOs typically include them asking for billions in government assistance, which she says is reasonable.
“I tell them you will be lucky to get half of that,” she said.
When they come in to finalize a deal, “where they get less than half of what they wanted and they tell me they are not feeling lucky. That’s the reality... We have to be tough with companies,” she said.
The department is prioritizing projects that will be operational by 2030, Raimondo said.
“We are saying ‘no’ for now” for longer-range projects, she said.
The department estimates the funding would ensure the US produces 20 percent of the world’s leading-edge logic chips by 2030, up from zero today, she said.
The US$52.7 billion fund provided by the Creating Helpful Incentives to Produce Semiconductors and Science Act, which was approved by the US Congress in August 2022, includes a US$39 billion program to subsidize chip production and related supply chain investments, and the awards would help build factories and increase production.
Earlier this month, Raimondo said that the department would award a US$1.5 billion grant to GlobalFoundries Inc, the first major award.
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