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A Review of the Companies to Receive Funds as Part of the Chips and Science Acts

Catwell

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Joe Biden introduced the CHIPS Act in 2022 to help boost the American economy post-pandemic and make the country more competitive in the chip sector − and it’s set to become impactful. So far, tech giants have received funds, and we’re likely seeing America manufacture approximately 20% of the world’s most advanced chips by 2030.  

Recently, Biden went to Syracuse, New York, to promote a significant $6.1 billion investment in Micron Technology from the CHIPS and Science Act. The goal here is to use those funds, along with $100 billion, for a manufacturing campus in Syracuse and a factory in Boise, Idaho. 

Intel has also received funds --- $8.5 billion --- for projects that focus on expansion and production capabilities in Ohio, Oregon, Arizona, and New Mexico. Intel will also receive $11 billion in long-term, low-interest loans as part of the $75 billion in loan authority from the CHIPS and Science Act. The company is investing an additional $100 billion. These funds are also intended to build new fabs.

TSMC expects to receive $6.6 billion in grants and $5 billion in loans to build a third fab project in Phoenix, Arizona. The company plans to invest another $60 billion and already has two manufacturing plants under construction in Phoenix.

Samsung received $6.4 billion in grants provided by the CHIPS Act to bring its chip production and R&D to central Texas. The company will invest $40 billion in this project.

Meanwhile, GlobalFoundries received $1.5 billion as part of the CHIPS and Science Act. With these funds, GlobalFoundries will boost its manufacturing capabilities and capacity to manufacture chips. It also plans to build a new fab in Malta.

Microchip Technology got $162 million under the CHIPS and Science Act to increase the production of MCUs and other semiconductors. The $162 million grant will expand a fab in Colorado Springs, Colorado, and Gresham, Oregon. BAE Systems received $35 million from the CHIPS Act to expand operations at its Nashua, New Hemisphere plant.

According to the Semiconductor Industry Association, the US has seen a drop in semiconductor manufacturing capacity --- from 37% (1990) to 12% (today). That’s because the US hasn’t invested in chip manufacturing while other countries have done so.

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