US to announce billions in subsidies for advanced chip-WSJ

Jan 27 (Reuters) - President Joe Biden's administration is expected next week to hand out billions of dollars in subsidies to top semiconductor companies, including Intel ( INTC.O ), Opens a New Tab, and Taiwan Semiconductor Manufacturing Co ( 2330. TW ), The Wall Street Journal The United States has opened a new tab to help build new factories, it said on Saturday. The upcoming announcements are aimed at starting production of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems, the WSJ reported, citing industry executives familiar with the discussions.

Executives expect some announcements to come before Biden's State of the Union address on March 7, according to the report. Among the potential recipients of the subsidies, Intel has projects underway in Arizona, Ohio, New Mexico, and Oregon that would cost more than $43.5 billion, the paper said. Another potential recipient, Taiwan Semiconductor Manufacturing Co (TSMC), has two plants under construction near Phoenix for a total investment of $40 billion. South Korea's Samsung Electronics, a competitor, has a $17.3 billion project in Texas.

Micron Technology ( MU.O ), opens a new tab Texas Instruments ( TXN.O ), opens a new tab, and GlobalFoundries ( GFS.O ), opens a new tab count among other top competitors, the WSJ added, citing industry executives. The U.S. Commerce Department declined to discuss any potential applicants and declined to comment on the report at any time. "It's a merit-based process with tough commercial negotiations - the CHIPS awards will depend entirely on which projects will advance US economic and national security".

In December of last year, US Commerce Secretary Gina Raimondo said she would provide about a dozen funds for semiconductor chips next year, including a multibillion-dollar announcement that could greatly reshape US chip manufacturing. The first award of more than $35 million was announced to BAE Systems ( BAES.L ) to open a new tab facility in Hampshire to make chips for fighter planes, part of the $39 billion "Chips for America" subsidy program. US Congress in 2022.