US Commerce aims to seek chips funding proposals by February

The U.S. Department of Commerce said Tuesday that it plans to begin soliciting applications for $ 39 billion in semiconductor chip government subsidies to build new facilities and expand existing U.S. manufacturing. February.

Congress in August approved $ 52.7 billion for semiconductor manufacturing and research and a 25% investment tax credit for chip factories, worth an estimated $ 24 billion. dollars. This credit applies to projects whose construction begins after January 1st.

“We will negotiate these deals one by one,” Commerce Secretary Gina Raimondo told reporters, adding that they would require companies to prove that government funding is absolutely necessary for production. “They won’t get more than they need to make these investments,” she said.

President Joe Biden has signed legislation to subsidize chip manufacturing in the United States to strengthen efforts to make the United States more competitive with China and reduce the ongoing chip shortage, which has led to car washing and video . It has influenced everything from games to cars and weapons.

Commerce said Tuesday: “The funding document, which will provide specific guidance for applications … will be released in early February 2023. As soon as applications can be processed, evaluated and exchanged responsibly, rewards and loans will be on an ongoing basis. ” But it will be done. ā€¯Raimondo said he hoped the money could be donated by spring.

The ministry said it plans to use $ 28 billion to establish “in-house production of state-of-the-art logic and memory chips, which require the most sophisticated manufacturing processes available today” and “the mature and current generation.” The plan is to use $ 10 billion for new, new specialty manufacturing capacity of K-technology chips and for semiconductor industry suppliers, “which includes chips for medical, automotive and defense devices.

The flea bill also includes $ 11 billion for research spending.

The trade can use up to $ 6 billion to support loans or loan guarantees in lieu of grants and “can be leveraged to support a $ 75 billion credit program.”

Raimondo told Reuters in an interview last week that the first priority was to have a team to oversee the program and then issue “high-level principles and guidelines on how we will execute this program and then we will have to do it.” A period of “very intense stakeholder involvement” in the “coming months”. Raimondo said on Tuesday that the team will consist of around 50 people.

Leave a Reply

Your email address will not be published. Required fields are marked *