Akash Jha
On August 9, the United States Department of Commerce announced that more than 460 businesses have shown interest in receiving government semiconductor subsidy financing to help the country become more competitive with China in the area of science and technology.
President Joe Biden signed the historic “Chips for America” legislation providing $52.7 billion in subsidies for US semiconductor manufacture, research, and workforce development on August 9, 2016. The White House is celebrating the one-year anniversary of the bill’s signing on August 9.
Businesses have committed $166 billion to semiconductor and electronics production over the past year, according to a statement released by Vice President Joe Biden. The law will “make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains,” Biden said.
The $39 billion subsidy programme for US semiconductor production and equipment and materials for creating chips began accepting applications in June, although awards have not yet been distributed.
Commerce Secretary Gina Raimondo told reporters, “We’re finally making the investments that are long overdue to secure our economic and national security.” We must act swiftly, but accuracy is more vital.
An official at the Commerce Department’s highest level told reporters, “We are in active dialogue with applicants and we expect to be announcing major progress in the months ahead.”
An estimated $24 billion in tax breaks for plant construction costs are included in the chips law as a 25% investment tax credit.
On Tuesday, Intel CEO Pat Gelsinger stated, “Governments around the world are working at a historic pace to revitalise semiconductor manufacturing and ensure a robust, resilient supply chain.” Change in the United States is palpable.
More than 140 individuals have been employed over the past year by the Commerce Department to develop a team and draught procedures for reviewing applications.
The department also wants to make sure China doesn’t get any money from the United States, so it’s making big winners give free or cheap childcare and split their extra cash.
The government has previously said that the typical award value will not exceed 35% of the project’s capital costs, with individual awards typically ranging from 5% to 15% of those costs.
We’ll be conducting our own independent research. “We are not giving out blank checks to any company that asks,” Raimondo stated in February.
Following the Commerce Department’s selection of deserving projects, the next step is for officials to determine the total amount of government funding to be allocated, as well as the composition of that funding through grants, government loans, and loan guarantees.
The legislation also sets aside $11 billion for R&D into cutting-edge semiconductor factories. The National Semiconductor Technology Centre is going to be the epicentre.
To further integrate R&D and workforce efforts across the semiconductor ecosystem, the Department of Commerce has announced that conversations are underway between the Departments of Commerce, Defence, Energy, and the National Science Foundation to establish the centre. The exact location is unknown at this time.
Also Read : Mutual fund calculator: ₹10,000 monthly SIP can make you a millionaire in ten years
