(Washington Composite Electric) It is reported that the US Biden government is preparing to provide billions of dollars of subsidies and loans for US chip companies Intel, Samsung, South Korea, and TSMC in Taiwan to help them expand chip production in the United States.
Reuters quoted sources that US President Biden and Minister of Commerce Raymond will announce the plan to support Intel's production at an event in Arizona next week. Intel has also invited customers and supplyGo to participate in the event when you are in business.
Intel refused to comment on the above reports.It is known that Intel has been fighting the government's funding for its expansion plan in Ohio and Arizona.
In order to improve the domestic semiconductor output, the United States allocated 52.7 billion US dollars (about S $ 70.5 billion) through chips and Science Act in 2022, of which 39 billion U.S. dollars were used to subsidize semiconductor production, $ 11 billionUsed for related research and development.
It is reported that Intel's upcoming support will be the biggest subsidy and loan after this decree takes effect.
Before that, the United States has provided subsidies for two chip companies.The Ministry of Commerce announced in January this year that it plans to give Microchip Technology $ 162 million for subsidies.The next month, the Biden government announced that it would provide $ 1.5 billion in GlobalFoundries, the world's third largest wafer foundation, subsidized it in adding semiconductor production facilities in Malta, New York to expand production capacity.
Analysis pointed out that the United States does this to reduce its dependence on the production of mainland China and Taiwan in semiconductor supply.Data from the semiconductor industry association show that the global semiconductor production capacity of the United States has fallen from 37 % in 1990 to 12 % in 2020.
In addition to supporting local companies, it is expected that the U.S. government will also announce it to South Korea Samsung and TSMC for Samsung and Taiwan TSMC in the next few weeks.Bloomberg quoted sources that the United States prepared for Samsung Electronics for more than $ 6 billion, allowing the chip manufacturer to expand its production scale in Texas; subsidies to TSMC at least $ 5 billion.
Samsung Electronics has a chip factory in Austin, Dezhou, and announced in 2021 that it spent $ 17 billion to build a new plant in the nearby Taylor City and is scheduled to be put into production in the second half of this year.
Biden opposes US Steel to Singapore Railway
On the other hand, Biden publicly opposed Japan's Nippon Steel to acquire US Steel, which is expected to cause dissatisfaction among the Kishida government.
Bynden issued a statement on Thursday (March 14) saying that the United States should have strong steel companies, and American Iron and Steel Corporation has been an indicator of the country for more than 100 years."It is important to keep an American steel company owned and operated."
However, Biden did not show that it would take a shot to prevent the transaction.American Iron and Steel and New Japanese Railway announced the $ 14.1 billion acquisition in December last year.The acquisition case is still waiting for the national security review of the US federal government.
Japanese Prime Minister Kishita Nakano will visit Washington within a month. At this time, Biden's intervention in the acquisition will cause what reactions will be concerned.
Analysis believes that the United States holds the presidential election this year, and Biden's move is based on domestic election considerations.Because some members of the two parties, together with the relevant union organization, are acquired by foreign companies by foreign companies.American Iron and Steel Corporation in Pittsburgh, Pennsylvania, and Pennsylvania is a key swing state. Biden defeated Trump in this state in the last presidential election in 2020.
For this statement of Biden, the secretary -general of the Japanese cabinet Lin Fang said on Friday that he was unwilling to comment on "the management of individual companies".He only said that the Japanese and American alliances are more powerful than ever, and the two countries will continue to cooperate in many fields.
