US Commerce Secretary Gina Raimondo announced an ambitious plan to provide about a dozen grants to finance semiconductor chips over the next year. These multibillion-dollar subsidies have the potential to significantly transform chip production in the country.
The first announcement was made on Monday of a $35 million award for a BAE Systems facility in Hampshire. This funding will be used to produce chips for combat aircraft, under the “Chips for America” semiconductor research and manufacturing support program, approved by Congress in August 2022.
“Next year we will announce some of the largest subsidies for advanced factories,” Raimondo told reporters. He added that he hopes to make 10 to 12 similar announcements, some worth millions of dollars.
Raimondo indicated in an interview with Reuters that the number of awards may exceed 12. He aims to increase the percentage of semiconductors produced in the United States from the current 12% to about 20%, although it is still less than the recorded percentage of 40%. in 1990. In addition, it seeks to establish at least two leading US manufacturing groups and realize advanced memory and packaging production, meeting the military’s needs for existing and mature chips.
The minister stressed that the United States currently lacks advanced industrial production and aims to reach approximately 10%.
Large companies in the sector such as Intel, Micron and GlobalFoundries are among those interested in obtaining significant funding for the chip program.
Raimondo reported that the program has received more than 550 expressions of interest and nearly 150 pre-orders, complete applications and concept plans, indicating strong interest, although he expects there will be many disappointed companies.
Congress allocated $39 billion for manufacturing incentives aimed at encouraging companies to build and expand facilities. Concessions can consist of grants, government loans, or loan guarantees.
The Department of Commerce has stipulated that direct financing grants will range from 5% to 15% of the project’s capital expenditures, and that total grants will generally not exceed 35% of these expenditures.
We will continue to inform.
