ALBAWABA – The United States (US) Commerce Department said Wednesday that semiconductor funding attracted hundreds of US companies in one month since the government started accepting applications.
The White House, exactly one year ago, announced a massive US semiconductor funding bid to boost the country’s competitiveness in the sector.
The US government began accepting applications in June for the $39-billion subsidy program for semiconductor manufacturing, as well as equipment and materials for making chips, according to Reuters. But the government has yet to issue awards.
So far, 460 companies have expressed interested in winning government semiconductor subsidy funding, the official statement said.
President Joe Biden signed the landmark "Chips for America" legislation in 2022, providing $52.7 billion in subsidies for US semiconductor production, research and workforce development.
Reuters reported Biden saying in a statement that companies have announced $166 billion in semiconductors and electronics manufacturing over the last year.
The law will "make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains", he said.
"We're finally making the investments that are long overdue to secure our economic and national security," Commerce Secretary Gina Raimondo told reporters on Wednesday.
"We need to move quickly but it's more important we get it right," she said.
Why did semiconductor funding attracted hundreds of US companies
A senior Commerce Department official told reporters the department is moving quickly: "We are in active dialogue with applicants and we expect to be announcing major progress in the months ahead."
The chips law also includes a 25 percent investment tax credit for building chip plants, estimated to be worth $24 billion, Reuters reported.
The Commerce Department spent the last year building a team of more than 140 people and writing rules for accepting and assessing applications, according to the Canada-based news agency.
The department is also seeking to ensure China will not benefit from US funding and is requiring companies seeking major awards to provide access to affordable high-quality childcare and share any excess profits.
The department previously said direct funding awards are expected to range between 5-15 percent of project capital expenditures and total award amounts generally not exceed 35 percent of project capital expenditures, Reuters underlined.
The law also dedicates $11 billion for advanced semiconductor manufacturing research and development. The focal point will be the National Semiconductor Technology Center.
Commerce officials said that discussions are underway between the departments, Defense, Energy, and National Science Foundation to establish the center "to better integrate research and development and workforce efforts across the semiconductor ecosystem."
