While it looks like the $52 billion CHIPS Act will go far, it looks like Intel might take the largest chunk of the government subsidies while processor manufacturer TSMC’s share won’t go as far.
TSMC has previously said that the subsidy for American chip manufacturing was “vital” to its Arizona plant, which has been expected to begin US production of Apple’s A-series and M-series chips from 2024 …
In 2021, the Senate approved $52 billion in funding to boost US chip production, the House adding its support as of February of this year. The effort sought to address the global chip shortage which arose during the COVID-19 pandemic and to ensure US stability against China in the chip marketplace.
The CHIPS Act turned into the CHIPS and Science Act, after additional funding was added for broader scientific, education, and defense spending.
According to the Financial Times, the funding is pretty much secure, and the next stage will be to decide which companies are allocated given resources:
The financial support from Washington is unlikely to stretch across all the giant projects already under construction or on the drawing board in the US.
“It’s not as big as everyone thinks,” said Pat Moorhead, a US chips analyst. With advanced chip manufacturing plants costing more than $10bn, the Department of Commerce, which will be responsible for deciding who gets the money, will face some difficult choices, he said.
Intel is apparently trying to get the largest allocation, and seems to be reaching for almost a third of the $52 billion in question:
Intel alone hopes to secure […] nearly a third of the total, for two fabs under construction in Arizona – and two more for which it is close to breaking ground in Ohio […]
Although Congress has agreed to make the grants available to foreign companies, domestic chipmakers are lobbying hard to make sure the lion’s share of the money goes to American companies. An executive at one US chipmaker said that the commerce department should favour companies that carry out their R&D in the US and employ the largest number of workers there things that would clearly favour American companies.
Stay tuned for additional details as they become available.
Via 9to5Mac and the Financial Times