TAYLOR, Texas – The Commerce Department is on track to disburse the entire $39 billion in grants provided under the CHIPS Act by the end of the year, Commerce Secretary Gina Raimondo told CNBC on Monday.
The Commerce Department is providing the money to semiconductor companies to incentivize them to expand their production capacity in the United States. The Biden administration announced earlier Monday that it would do so Samsung with grants of up to $6.4 billion for the expansion of two chip factories in Central Texas – that leaves around $16 billion in grants that need to be distributed by the end of 2024.
“We are on a good way. We’ve done three of these in the last month. We will do more in the coming weeks,” Raimondo said in an interview on the sidelines of Samsung’s awards ceremony at its Taylor factory. “I expect all of the CHIPS Act money to be made available by the end of this year.”
So far, pricing announcements have focused primarily on leading-edge chips, the most advanced type of semiconductor. Intel will receive up to $8.5 billion in incentives to invest in projects in Arizona, New Mexico, Ohio and Oregon Taiwan Semiconductor is set to receive up to $6.6 billion in grants for projects in Arizona.
Now that the largest grants have been awarded, future funding packages will focus on memory chips and investments in suppliers, wafers and chemicals, Raimondo said.
The Samsung award, announced Monday, will help the company create what it calls an “advanced manufacturing ecosystem” in Central Texas, where multiple steps in the chip production process are all performed on a single campus. The Taylor plant will be twice the size of Samsung’s plant in South Korea, Raimondo said.
“It’s a small manufacturing town and there will be suppliers all around it,” she continued. “So when I talk about the entire ecosystem, it is research and development, packaging, manufacturing, job training and all the upstream suppliers that will make America stronger and safer.”
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2024-04-16 00:09:19
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