Advanced Semiconductor Manufacturing Boost: Subsidies Expected Soon

Summary

  • Aiming to stimulate the manufacturing of advanced semiconductors, a series of announcements are expected soon.
  • Industry executives anticipate some of these announcements, related to the production of the chips powering smartphones, artificial intelligence and weapons systems, to come prior to President Joe Biden’s State of the Union address.
  • Companies including Intel, Taiwan Semiconductor Manufacturing Co (TSMC), and Samsung Electronics are likely to benefit from these subsidies.
  • These potential recipients of funding have expensive projects underway across the United States, ensuring the country remains at the forefront of semiconductor technology.

Upcoming Semiconductor Manufacturing Announcements

Advanced semiconductors, the essential components in smartphones, artificial intelligence, and weapons systems, are at the heart of forthcoming announcements aimed at encouraging their production, according to industry executives referenced in a WSJ report.

Timely Announcements

The same executives anticipate some of these declarations to take place ahead of the State of the Union address by U.S. President Joe Biden on March 7, as outlined in the WSJ article.

Anticipated Funding Recipients

Among potential subsidy beneficiaries, Intel has ongoing projects in Arizona, Ohio, New Mexico, and Oregon with a combined price tag exceeding $43.5 billion. Another potential beneficiary, TSMC, is in the process of constructing two plants near Phoenix necessitating a total investment of $40 billion. Samsung Electronics from South Korea, a likely contender, has a project in Texas worth $17.3 billion. Other key contenders include Micron Technology, Texas Instruments, and GlobalFoundries.

Possible Impact on U.S. Chip Production

Last December, U.S. Commerce Secretary Gina Raimondo indicated her plan to disburse around a dozen funding awards for semiconductor chips, including multi-billion dollar announcements likely to significantly reshape U.S. chip production.

The first of these awards announced in December consisted of an over $35 million subsidy awarded to a BAE Systems facility in Hampshire. They will manufacture chips for fighter aircraft, as part of the $39 billion “Chips for America” program approved by the U.S. Congress last year.

The influx of funding and investment in the semiconductor manufacturing landscape can have a significant ripple effect across various markets, particularly in the forex or trading spaces. It could potentially influence the valuation of tech-based assets and the currencies of the countries housing these multinational corporations.

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