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.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares