8 CHIP COMPANIES THAT HAVE BENEFITTED FROM THE US CHIP ACT

So far, 8 companies have benefited from the Biden administration’s multi-billion dollar chip making funding. You would recall that Joe Biden in 2022 signed the US CHIPS and Science Act with the sole aim of boasting the manufacturing of semiconductor in the US including research and development.

On February 28, 2023, the Biden-Harris Administration through the U.S. Department of Commerce’s National Institute of Standards and Technology launched the first CHIPS for America funding opportunity for manufacturing incentives to restore U.S. leadership in semiconductor manufacturing, support, good-paying jobs across the semiconductor supply chain, and advance U.S economic and national security.

According to the secretary of commerce Gina M Raimondo, the historic CHIPS and Science Act is not only an opportunity to unleash next generation of American innovation, but to also protect the U.S national security and preserve her global economic competitiveness.

When implementation is finished, this CHIPS and Science innovation is expected to make America the premier destination in the world where new leading-edge chip architectures can be invented in her research labs, designed for every end-use application, manufactured at scale and packaged with the most advanced technologies, this is according to Gina M Raimondo

$280 dollars in package for chips and $52 billion subsidies for semiconductors were earmarked for this project. As at of June 2024, half of the fund has been allocated to various chip designers and manufactures in the U.S.

Here are some of the companies that got the allocation and what the U.S government said will be achieved through these companies:

Intel ($8.5 billion): Intel a semiconductor giant and pioneer received $8.5 billon direct funding and $ 11 billion in federal loans. Intel is expected to create over 10,000 jobs and 20,000 construction jobs with plans to support over 50,000 indirect jobs for suppliers and adjacent industries through her plants. Intel plans to build chipmaking sites in places like Arizona, New Mexico, Ohio, and Oregon over the next five years.

Taiwan Semiconductor Manufacturing Company (TSMC)$6.6 billion: TSMC received $6.6 billion in grants and $ 5 billion in loans.  TSMC will build its third facilities and the first major U.S chipmaking hub in Phoenix, Arizona adding to the two facilities in Arizona which is expected to begin production in 2025 and 2028. America with this stride is expected to produce 20% of the world’s advanced chips by 2030.

Samsung $6.4 billion: Samsung received $6.4 billion in direct funding to support her more than $40 billion investments in her existing facilities in Austin. Their focus is to develop and produce advanced chips, research and development, and advanced packaging.

Micron $6.1: Micron is expected to build chip fabrications sites or fabs in New York and Idaho as part of the federal funding to build a mega-fab project which will produce memory chips in central New York and is expected to create 50,00 jobs.

GlobalFoundries $1.5 billion: This semiconductor manufacturers and designers will use the fund to support 3 key/critical projects which are to expand the GlobalFoundries’ chip fabrication facility in Meta New York by adding critical technology it uses in Singapore and Germany. Secondly, they are expected to build to a new state-of-the-art chip that can be used for automative, aerospace, defense, and artificial intelligence and thirdly to manufacture next-generation gallium nitride (GaN) semiconductors at a high volume for technologies including power grids and data centers.

Microchip Technology $162 million: With the funding, the company will increase production of microcontroller units (MCUs) and other specialty semiconductors which are critical to the manufacturing of automotives including electric vehicles, and tech such as cell phones and airplanes.

Polar Semiconductor $120 million: The funding is to be utilized in expanding its manufacturing facility Bloomington, Minnesota together with its tech capacities aimed at doubling its production capacity of sensor and power chips in the U.S within two years.

BAE Systems $35 million: BAE is an aerospace and defense-tech company, the funding is for it to modernize its Microelectronics center (MEC) in Nashua, New Hampshire. With the funding, it is expected to purchase new and efficient tools to improve its supply chain to meet increasing demand from Department of Defense for technology, and non-defense industries such as satellite communications.

With the continuous rise of artificial intelligence and the increasing war for dominance and self-sufficiency amongst nations, America has taken giant stride to being in control of 20% of world’s chip manufacturing and distribution by 2030, with incentives to restore U.S. leadership in semiconductor manufacturing, support, good-paying jobs across the semiconductor supply chain, and advance U.S economic and national security.

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