The U.S. government is expected to provide billions of dollars in subsidies to some semiconductor companies in the coming weeks to help them build new semiconductor plants on U.S. soil.。

It is understood that the upcoming subsidies are related to the introduction of the US Chip Act in the second half of 2022.。The bill mentions that the U.S. government will provide up to $53 billion in subsidies for semiconductor R & D and manufacturing in the U.S. to bring chip manufacturing back to the U.S.。Although the bill was passed in 2022, the government has so far provided only two smaller grants.。

According to people familiar with the matter, the upcoming subsidies will focus on advanced semiconductor manufacturing for smart phones, artificial intelligence and weapon systems。It is reported that companies that may receive this batch of subsidies include Intel, TSMC, etc.。

Currently, Intel is planning semiconductor projects in Arizona, Ohio, New Mexico and Oregon, which will cost more than $43.5 billion.。As for TSMC, the company is currently building two plants near Phoenix in the United States, with a total investment of $40 billion, and the first plant is expected to be completed as soon as 2025.。TSMC recently said it had delayed the start of construction of its second plant from 2026 to 2027 to 2028, and said U.S. government "incentives" would affect its construction process.。

In addition, South Korea's Samsung Electronics is a potential beneficiary, the company currently has a $17.3 billion project in Texas.。Micron Technology, Texas Instruments and other companies are also on the list of competitors.。

For chipmakers, these expenditures will help ease the financial strain of building plants。Several semiconductor companies have pledged to invest more than $230 billion in the U.S. in recent years, many of which are explicitly conditional on government support.。

Intel CEO Pat Gelsinger has been a major industry lobbyist for the funding.。Intel used to be the world's biggest chipmaker, but now it's falling behind rivals。In order to be able to "make a comeback," Kissinger has been building up his semiconductor manufacturing capabilities in recent years.。

According to the report, an announcement is expected to be released before U.S. President Biden's State of the Union address on March 7.。In addition, the report also mentioned that the subsidy funds are likely not a one-time payment, but will be phased out to the enterprise。

A Commerce Department spokesman, citing commerce officials, said it was a merit-based admissions process that required tough business negotiations。He said the grant would depend entirely on which programs would contribute to the U.S. economy and national security.。

In December, Commerce Secretary Gina Raimondo said the department plans to provide about a dozen grants this year, including several multibillion-dollar grants to support advanced chip manufacturing facilities.。These grants may be in the form of grants, loans, etc., covering up to 15% of the project cost。