Billions of dollars will soon flow from the Chips and Science Act24. February 2023
Billions of dollars will soon flow from the Chips and Science Act
Later this week, US Secretary of Commerce Gina Raimondo will announce how she will allocate subsidies provided by the CHIPS and Science Act of 2022, according to a statement from the Biden administration.
This is $52.7 billion that will go to US semiconductor manufacturing and research. The law passed both houses of Congress in July and was signed into law by President Biden in August. In detail, it is envisaged that 39 billion dollars will flow to the semiconductor companies, which can use it to invest in chip factories and associated factories. The remaining $13.2 billion is reserved for employee training and R&D.
A separate four-year 25% tax credit worth about $24 billion aims to encourage manufacturers to build plants in the United States.
The Chips Act has spurred more than 40 new semiconductor projects in the US, including plans for new factories and expansions of existing factories, according to the Semiconductor Industry Association.
The projects come with promised investments of nearly $200 billion to boost U.S. manufacturing capacity, according to the trade group.