Executives anticipate key announcements prior to President Biden’s State of the Union address on March 7, as per a report. Intel, expected to be a major beneficiary, is involved in projects exceeding $43.5 billion across Arizona, Ohio, New Mexico, and Oregon. Taiwan Semiconductor Manufacturing Co (TSMC) is also likely to receive subsidies, with two plants near Phoenix totaling a $40 billion investment. Samsung Electronics, another contender, has a $17.3 billion project in Texas.
Other strong contenders include Micron Technology, Texas Instruments, and GlobalFoundries, according to industry executives cited by the Wall Street Journal (WSJ). The U.S. Department of Commerce refrained from discussing potential applicants, emphasizing a merit-based process with rigorous negotiations, focusing on projects advancing U.S. economic and national security.
The department spokesperson declined to comment on the timing of the announcements. TSMC chose not to provide a statement, while Intel did not respond to requests. In December of the previous year, U.S. Commerce Secretary Gina Raimondo pledged around a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar allocations that could significantly reshape U.S. chip production.
The first award, unveiled in December, exceeded $35 million and was granted to a BAE Systems facility in Hampshire. This facility will produce chips for fighter planes, contributing to the $39 billion “Chips for America” subsidy program approved by the U.S. Congress in 2022. Reporting by Rishabh Jaiswal in Bengaluru, edited by William Maclean, Clelia Oziel, and David Gregorio.