The USA wants to provide global producerschips 25% tax credit for new factories. Plus, $39 billion of subsidies are planned for “domestic” efforts that will welcome foreign semiconductor players. Discuss
New document sheds new light on plansUS Department of Commerce for the distribution of the CHIPS Act fund, approved by Congress this year to finance the production of chips. Tax incentives and $39 billion in grants, cooperative agreements, loans, and loan guarantees are provided to companies working to advance U.S. interests in semiconductors and supply chain security.
The document states that the United States remainsworld leader in chip design and proprietary design and automation tools, but also notes that the US accounts for only 10 percent of the world's chip manufacturing capacity and just 3 percent of the world's packaging, assembly, and testing services. The ministry adds that China's recent progress in accelerating its own domestic chip production only exacerbates the risk to US supply chains.
At the same time, the Ministry of Commerce is not so important,which companies will be eligible for funding. It is available to any company, foreign or domestic, that takes steps to achieve the goals of the US Commerce Department, with the exception of "companies of concern."