CHIPS Act: America's semiconductor industry, reborn?
In 2022, the U.S. Senate passed legislation to support the domestic semiconductor industry called the US CHIPS and Science Act. The $280 billion spending package was signed into law on Aug. 9 by President Joe Biden and was meant to encourage the growth of the US semiconductor industry -- and help the US win a burgeoning chip war with China. GlobalFoundries, Intel, Samsung Foundry, Texas Instruments, TSMC, and other companies that build semiconductor manufacturing facilities in the USA welcomed the move.
The CHIPS Act -- officially called H.R. 4346 -- authorized the U.S. government to award U.S. chipmakers with about $52 billion in grants and other incentives and provided a 25% investment tax credit for new fabs worth up to $24 billion. In addition, the legislation provided over $170 billion over the next five years to various scientific research works in the USA.
But has it been successful? Which companies have been the big winners, and how has the US semiconductor industry improved? Here's everything you need to know.
GlobalFoundries to upgrade U.S. fabs using $1.5 billion funding it gets under the CHIPS act and $600 million from the state of New York.
Intel is in talks with the U.S. government over a $10+ billion subsidies + loans package.
The U.S. may make significant investments in Vietnam to boost its semiconductor sector.
The Department of Commerce is signaling that it intends to distribute at least $500 million of CHIPS Act cash.
Samsung's Texas fab will be operational in 2024, but won't have mass production capability until 2025 at the earliest.
German coalition finally agrees to provide Intel and TSMC billions of Euros in funding.
The U.S. government has begun doling out portions of the $52 billion CHIPS Act, beginning with just $35 million to BAE Systems. It also warns of possible delays in Intel and TSMC fab buildouts.
Amkor to build $2 billion advanced chip packaging facility in the U.S. primarily targeting Apple.
Germany vows to subsidize Intel and TSMC fabs despite a budget crisis, though Intel and Wolfspeed reportedly received firm fab funding commitments from the German government.
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