Building a factory in China without subsidies! America's huge $52 billion chip law subsidy may be set up

In Intel, Taiwan Semiconductor, Samsung previously strongly appealed to the US Congress to pass the chip Act, to provide $52 billion in funding subsidies, the news pointed out that the US Congress has decided to vote on the bill on Tuesday.

Senate Majority Leader Chuck Schumer said the U.S. Congress could vote as soon as Tuesday on a bill to finally support the recovery of the U.S. semiconductor industry, Reuters quoted sources as saying. However, because the bill is only manufacturing ability to subsidize the semiconductor manufacturers, so beneficial to a handful of manufacturers such as Intel, which makes more than other semiconductor manufacturer is considering whether to put forward objection, the accident caused a civil war, the semiconductor industry to stop government subsidies a few semiconductor manufacturers in the United States.

Building a factory in China without subsidies! America's huge $52 billion chip law subsidy may be set upThat's because U.S. semiconductor makers with chip manufacturing capabilities, including Intel Corp., Texas Instruments Inc., micron Technology Inc., and others, could benefit from the move and receive U.S. government funding. However, AMD, Qualcomm, and Nvidia, which only have the ability to design chips, cannot make profits because they do not produce chips. As a result, AMD, Qualcomm, Nvidia and others are considering whether to file objections before the vote

The report stressed that the ADMINISTRATION's push for the chip bill is aimed at further countering China's rise in the semiconductor industry. Because, according to statistics, China's semiconductor industry has grown rapidly in the past five years, and the number of semiconductor chips produced by China has reached nearly 10% of the global market. Therefore, the United States plans to provide $52 billion in financial subsidies and tax breaks to semiconductor manufacturers through the CHIP act, which also promotes the further development of the SEMICONDUCTOR manufacturing industry in the United States, and the bill has won bipartisan support in the United States Congress, and introduced their own bills in the House and Senate. As for the final legislation, it is expected that the final decision will be made in the upcoming vote.

It also emerged that under draft legislation, the bill, which provides about $52 billion to boost U.S. semiconductor manufacturing, would put in place so-called guardrails designed to ensure that hostile countries like China do not benefit.

It would seek to block companies from using those subsidies if they also build or expand advanced semiconductor manufacturing plants in China or other potentially hostile countries, according to a draft reviewed by The Wall Street Journal.

Some companies, including Intel Corp., have been encouraging lawmakers to ease eligibility criteria for subsidies for companies doing business with China, according to people familiar with the matter.

The Semiconductor Industry Association did not respond to questions about whether it supported the fence. John Neuffer, the association's chief executive, said in a statement that the group was "encouraged by the legislative progress and looks forward to expeditiously enacting legislation to strengthen domestic chip manufacturing, design and research."

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