A large number of companies are still waiting for the US government's check, as the US Chip Act has been in effect for a year. Chip | Semiconductor | US government
The Biden administration has been introducing the Chip and Science Act for a year now.
On the 9th, US President Biden issued a statement stating that over the past year, the bill has provided $52.7 billion in subsidies for semiconductor production, research and development, and labor development in the United States. Large chip companies have announced investments of $166 billion in semiconductor and electronic product manufacturing.
The US Department of Commerce stated on the same day that over 470 companies have expressed their desire to receive semiconductor subsidy funds from the US government.
According to foreign media reports, several small companies have stated that their projects will be entirely dependent on federal government assistance, and so far they are still waiting for approval of this aid funding.
The Confusion of Large Chip Companies
The US Department of Commerce has issued a statement stating that since Biden took office, private companies have announced over $230 billion in chip manufacturing plans. "We are actively engaged in dialogue with the applicant and expect significant progress in the coming months," a senior official from the Ministry of Commerce told the media.
The Ministry of Commerce previously stated that the funding amount is expected to account for 5% to 15% of project capital expenditures, and the total amount of funding is generally not expected to exceed 35% of project capital expenditures.
According to expert opinions cited by American media, the allocation of chip funds is related to government scrutiny and complexity, but there is no doubt that major chip companies are fiercely competing and continuing to lobby for more market share. Meanwhile, small companies are concerned about being excluded from funding projects.
Industry research institutions say they are more concerned about how chip funding can promote technology research and create job opportunities. Research institutions say that in addition to the chip bill, other relevant government plans should also be considered to meet the huge demand for technical talent in the coming years.
US media quoted Intel CEO Geisinger, who plans to spend $43 billion to build new factories in Arizona and Ohio, as saying that he believes the company should receive more funding than other chip companies.
"If companies like Samsung build factories in the United States, we should be happy about it," said Geisinger. "All of my important research and development work is done here, while most of the work of other companies is done overseas, so we should benefit more."
On the 9th, Newfield, President and CEO of the Semiconductor Industry Association of America, stated that after the one-year anniversary of the signing of the chip bill, decision-makers in Washington should promote policies with practical significance, including close cooperation with industry experts to address the serious shortage of STEM skilled workers facing the semiconductor industry and the US economy, and ensure that the chip industry can open up to the global market.
A large number of companies are still waiting for government checks
The US Department of Commerce stated that in the past year, they have formed a team of over 140 people, and once the department identifies eligible projects, they will decide how much government funding to disburse.
"We will do our best, but that doesn't mean we will make empty promises to all companies that make demands," said US Secretary of Commerce Raymond in February.
Several small companies have stated that their projects will be entirely dependent on federal government assistance, and so far they are still waiting for approval of this aid funding.
Integra Technologies, which provides semiconductor packaging and other services, stated that they plan to build a 1 million square foot factory in the Wichita area of Kansas, provided they receive federal funding.
"Integra's participation in the semiconductor manufacturing industry has very low profits in the backend stage, and without the support of the chip bill, we would not have been able to achieve this plan," said Integra CEO Robinson.
Robinson stated that the factory can immediately create 2000 high paying job opportunities.
"Once launched, operational, and operational, the company can maintain its business without further government support," Robinson said. "However, building this facility requires a significant amount of cost and time, which requires government assistance.".
Another semiconductor foundry, SkyWater Technology, has announced plans to spend $1.8 billion to build a new factory in West Lafayette, Indiana.
The company expects that the new factory can hire 700 new employees. However, the relevant plans are still in the planning stage as the new factory cannot break ground and start construction until the project receives federal funding.
"Once the funds start running, we can start the process as soon as possible," said Sandman, CEO of the company. "Efforts to strengthen our chip facilities will depend on funding provided by the chip bill."
