The US government will soon provide billions in new subsidies for chip makers such as Intel and the Taiwanese TSMC, reports the American business newspaper The Wall Street Journal (WSJ).
According to chip industry executives, the financial support is far more excellent than the United States previously provided to that sector. With the new subsidy, President Joe Biden’s government wants to increase chip production in the US.
The subsidies are part of the so-called Chips Act. The US wants to reduce chip production in its own country and prevent the sector from growing in China. By moving production to the US, the country can also avoid facing another major chip shortage, as was the case in 2021. That shortage cost American companies hundreds of billions in revenue.
The financial support is expected to be awarded in the coming weeks. Support may also go to chip companies Texas Instruments, Micron Technology and GlobalFoundries. Under the Chips Act, the US government provided $35 million in support to the British aerospace company BAE Systems.