US Lays Out $50 Billion Chips Plan and Will Issue Funds Guide in 2023
2022.09.07 00:38
© Bloomberg. Electrical components with semiconductors for the automotive industry at the IAA Munich Motor Show in Munich, Germany, on Tuesday, Sept. 7, 2021. The IAA, taking place in Munich for the first time, is the first in-person major European car show since the Coronavirus pandemic started.
(Bloomberg) — The Biden administration published its strategy for subsidizing US output of semiconductors, saying it will give guidance on how companies can apply for funds from the $52 billion Chips and Science Act by February.
The plan — known as Chips for America — allocates $28 billion for domestic production of leading-edge logic and memory chips, about $10 billion for new capacity to build current-generation chips and semiconductors, and $11 billion for a new National Semiconductor Technology Center, manufacturing institutes, and other development programs, the Department of Commerce said in a statement accompanying the strategy’s release Monday.
Commerce will release funding documents that will provide specific application guidance for the program by early February, it said.
“Awards and loans will be made on a rolling basis as soon as applications can be responsibly processed, evaluated and negotiated,” it said.
President Joe Biden signed the chips legislation into law Aug. 9. It’s the centerpiece of his administration’s effort to reduce dependence on Asian suppliers like Taiwan and South Korea, whose local companies are leading the global market, and to address supply-chain disruptions and resulting price hikes for certain goods containing semiconductors.
©2022 Bloomberg L.P.
