Semiconductor Giants Are Seeking 'Final Subsidies' Before Trump Takes The Oval Office
1min read The change of government is a risk that many companies cannot ignore, especially in the U.S. As one of the most important plans promoted by the Biden administration, the "CHIPS and Science Act" is currently in a state of uncertainty.
As two informed sources suggest, TSMC and GlobalFoundries, along with a third chip company, are rushing for the final chip subsidies. It is reported that the U.S. Department of Commerce has recently notified Congress that subsidies will be provided to the three companies.
According to the "CHIPS Act", the Department of Commerce must notify the relevant committees of Congress 15 days in advance before any transaction exceeding $10 million. This is seen in the industry as a sign that the process is moving forward rapidly to finalize before the Trump new administration takes office.
In April of this year, TSMC's U.S. subsidiary reached an agreement with the U.S. Department of Commerce to receive a $6.6 billion subsidy from the U.S. government for the construction of a semiconductor factory in Arizona. Earlier, GlobalFoundries obtained a $1.5 billion incentive through negotiations for the construction of a new semiconductor factory in New York State and the expansion of a factory in Vermont.
The U.S. Department of Commerce refused to respond to subsidies related to TSMC and GlobalFoundries but pointed out that notifying Congress is a routine part of the chip project office procedure and does not mean that the terms have been finally determined.
In October, Trump seriously stated in a program that the "CHIPS Act" was ridiculous, believing that the U.S. government actually took out billions of dollars for companies that were already wealthy.
He believes that the government spending a lot of money to ask people to manufacture chips on their own land is not the fundamental solution. The United States can achieve this through a series of tariffs, as long as the tariffs are high enough, producers will come to the United States to build factories on their own.
House Speaker Mike Johnson also hinted in October that the "CHIPS Act" might be repealed, but he did not make a clear statement on this.
However, some companies have indicated that the Trump administration is not expected to overturn the "CHIPS Act". GlobalWafers stated on Thursday that the CHIPS Act subsidies will continue to be effective under the new government.
The company stated that plans similar to the "CHIPS Act" and its multi-year plans already signed will continue normally between this and the next U.S. government, and there will be no difference in chip manufacturing projects, which will still run smoothly under the Trump administration.
