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u.s. semiconductor and manufacturing industries are making a comeback. on august 9, 2022, us president biden officially signed the "creating helpful semiconductor production incentives (chips) and science act" law, referred to as the chips act, which aims to improve the competitiveness, innovation and national security of the united states. the chips act provides for an investment of $280 billion over the next ten years. most of this ($200 billion) is spent on scientific research and development and commercialization. about$52.7 billion for semiconductor manufacturing, r&d and workforce development,there is also $24 billion in chip production tax credits. there is also $3 billion for projects targeting cutting-edge technologies and the wireless supply chain.

the chips act provides for $280 billion over the next decade

two years later, more than half of the us$52 billion in subsidies have been disbursed.reuters reported that so far, the u.s. department of commerce has allocated more than $35 billion to 26 projects. according to incomplete statistics, only 12 companies including intel, tsmc, samsung, micron, globalfoundries, amkor, microchip, polar semiconductor, absolics, hp, and bae systems shared 61% of the us$52 billion, totaling approximately us$31.582 billion. .

intel: $8.5 billion

on march 20, 2024, the u.s. department of commerce and intel corporation announced a preliminary memorandum, according to which intel will receive approximately us$8.5 billion in direct funding under the chip and science act. the funding will help intel advance its critical semiconductor manufacturing and r&d projects in arizona, new mexico, ohio and oregon.

intel ceo pat gelsinger (right) and u.s. commerce secretary gina raimondo hold a commemorative u.s. chip and science chip as they visit the intel semiconductor factory in chandler, arizona. act plaque.

intel is the only american company that both designs and manufactures cutting-edge logic chips, so it deserves the most subsidies.this subsidy accounts for 22% of the total subsidies for chip production under the chips act. in addition to subsidies, the commerce department also provided an additional $11 billion in low-interest loans and a 25% tax credit of up to $100 billion.

chips act funding and intel's previously announced plans to invest more than $100 billion in the u.s. over five years form one of the largest public-private investments ever in the u.s. semiconductor industry.

tsmc: $6.6 billion

on april 8, 2024, the u.s. department of commerce and tsmc arizona signed a non-binding preliminary terms memorandum (pmt) to directly provide up to $6.6 billion in funding under the chip and science act.in addition to the proposed $6.6 billion in direct financing, pmt has proposed a loan of up to $5 billion to tsmc. tsmc plans to apply for an investment tax credit from the u.s. treasury department of up to 25% of tsmc’s qualified capital expenditures in arizona.

tsmc also announced plans to build a third wafer fab in tsmc arizona to leverage america's most advanced semiconductor process technology to meet strong customer demand. with the completion of tsmc's first wafer fab and the continued construction of the arizona subsidiary's second wafer fab, the completion of the third wafer fab will bring tsmc's total capital expenditures at the phoenix, arizona factory to more than 650 million billion, becoming the largest foreign direct investment in arizona’s history and the largest foreign direct investment in a greenfield project in u.s. history.

tsmc's first wafer fab in arizona is expected to begin production using 4nm technology in the first half of 2025. in addition to the previously announced 3nm technology, the second wafer fab will also use next-generation nanosheet transistors to produce the world's most advanced 2nm process technology and will start production in 2028. the third fab will produce chips using 2nm or more advanced processes and will start production in 2020. like all of tsmc's advanced fabs, all three fabs will have clean rooms approximately twice the size of industry standard logic fabs.

samsung: $6.4 billion

on april 15, 2024, the u.s. department of commerce provided direct funding of up to $6.4 billion to samsung under the chip and science act. there are several noteworthy aspects of this deal.in addition to the usual factory expansion, samsung has committed to bringing its most advanced chip manufacturing technology to the new factory in tyler, texas. it will also establish an advanced packaging operation, an r&d factory, and an r&d center.

samsung's u.s. taylor factory is already a massive construction project, and samsung has committed to building a second fab there. they will also upgrade the first fab from the originally planned 4nm process to the most advanced 2nm process, and the second fab will also run the process at the same time. this means intel, tsmc and samsung will all provide their most advanced manufacturing processes in the united states. this is good for competition and good for the united states.

samsung has also committed to significantly expanding its existing factory in austin, about 20 miles southwest of tyler. it will bring the fd-soi process to the austin facility.

since 1996, samsung semiconductor has invested $18 billion to operate two fabs at its campus in austin, texas, one of the largest direct foreign investments in u.s. history. in 2021, samsung announced that it would invest at least us$17 billion to expand the taylor plant to build a new semiconductor manufacturing plant. together with investments made through the chip and science act, samsung is expected to invest more than $40 billion in the region over the next few years, one of the largest greenfield foreign direct investments in u.s. history.

micron: $6.1 billion

on april 25, 2024, the u.s. department of commerce reached a preliminary agreement with micron to provide up to approximately us$6.14 billion in direct funding under the chip and science act. the investment will support micron's construction of two fabs in clay, new york, and one in boise, idaho.

clay, n.y.: the funding will be used to build the first two of a planned four "gigafabs" focused on producing cutting-edge dram chips. each fab will have 600,000 square feet of clean room space, for a total of 2.4 million square feet of clean room space across the four fabs—the largest clean room area ever announced in the united states, and an area close to 40 football fields.

boise, idaho: the funding will be used to build a high-volume manufacturing (hvm) fab with approximately 600,000 square feet of clean room space dedicated to producing cutting-edge dram chips. the fab will be co-located with the company's existing cutting-edge r&d facilities to increase the efficiency of its r&d and manufacturing operations, reduce technology transfer lags, and shorten the time to market for cutting-edge memory products.

the subsidy will also support micron's efforts to unlock $50 billion in private investment by 2030, the first step in micron's plans to invest up to $125 billion in two states over the next two decades to create a cutting-edge memory manufacturing ecosystem. micron's total investment will be the largest private investment in the history of new york and idaho and will create more than 70,000 jobs, including 20,000 direct construction and manufacturing jobs and tens of thousands of indirect jobs.

texas instruments: $1.6 billion

in mid-august, the u.s. department of commerce will provide texas instruments with up to $1.6 billion in funding to help the company build three new manufacturing plants. two of them are located in sherman, texas (sm1 and sm2), and one is located in lehi, utah (lfab2), specifically for: construction and construction of sm1 cleanroom and complete first production pilot production line; construction and construction of lfab2 clean room for first production; construction of sm2 construction;

in addition to the grant, the commerce department will provide texas instruments with a loan of up to $3 billion. the company also expects to receive a federal tax credit that would cover 25% of the cost of building and equipping the plant. officials stated,these informationking will support the company's investment of more than $18 billion in new facilities.

additionally, ti expects to receive approximately $6 billion to $8 billion in funding from the u.s. treasury department's investment tax credit for qualified u.s. manufacturing investments.the proposed direct funding coupled with investment tax credits will help ti provide a geopolitically reliable supply of basic analog and embedded processing semiconductors.

haviv ilan, president and ceo of texas instruments, said: "as we expand our 300mm manufacturing operations in the united states, our investments will further strengthen our competitive advantage in manufacturing and technology. we plan to increase our in-house manufacturing rate to more than 95%.”

globalfoundries: $1.5 billion

on february 19, 2024, the u.s. department of commerce announced that as part of the u.s. chip and science act, it planned to directly inject $1.5 billion into globalfoundries (gf).

globalfoundries is the only u.s.-based pure-play foundry and the first semiconductor pure-play foundry to receive a major chips and science act award (over $1.5 billion). the proposed funding will support three gf projects:

expansion of gf's existing facility in malta, ny, adding key technologies already in production at gf's facilities in singapore and germany.

construction of a new state-of-the-art wafer fab at the malta campus. the construction of this new wafer fab, combined with the expansion of gf’s existing campus, is expected to triple the existing production capacity of the malta campus over the next 10 years. both projects are expected to increase wafer production to 1 million wafers per year when all phases are completed.

modernizing gf’s longest continuously operating facility and the first and largest trusted 200mm facility in the united states in essex junction, vermont. the project will upgrade existing facilities, expand production capacity and create the first u.s. factory capable of high-volume production of next-generation gallium nitride (gan) semiconductors.

based on market demand, gf plans to invest more than $12 billion in its two u.s. facilities over the next 10 years through public-private partnerships, with support from federal and state governments and ecosystem partners including key strategic customers.

amkor: $400 million

developing an advanced packaging ecosystem is one of the four pillars of chips for america. on july 26, 2024, the u.s. department of commerce and amkor technology corporation have signed a non-binding preliminary terms memorandum (pmt) to provide up to $400 million in proposed direct funding under the chips and science act. the proposed funding would support amway's investment of approximately $2 billion and 2,000 jobs in a greenfield project in peoria, arizona. in addition to the proposed direct funding of up to $400 million, the chips program office will provide approximately $200 million in proposed loans to amkor under the pmt.

u.s. national economic advisor lael brainard said: “this announcement marks another important milestone in president biden and vice president harris’ chip and science act, which significantly increases u.s. advanced packaging capabilities.

Polar Semiconductor：1.23亿

on september 24, the u.s. department of commerce stated that it had finalized an allocation of us$123 million to polar semiconductor. polar semiconductor is a minnesota-based manufacturer of sensors and power semiconductors. the subsidy funds are used to expand its minnesota factory, which will nearly double the company's u.s. power and sensor chip production capacity.

the grant is part of the biden administration's $52.7 billion semiconductor manufacturing and research subsidy program and is the first allocation in the program finalized by the department. the commerce department will allocate funds based on polar's completion of project milestones.

in addition to the new facility, the investment will also mean a change in polar's ownership - 70% of the company was previously held by japan's sanken electric co., but the total investment will see 59% of the company owned by new york-based niobrara capital and new jersey-based prysm capital. this will transform polar semiconductor from a u.s. foundry owned by a foreign entity to a domestic fab with majority u.s. control.

microchip: $162 million

on january 4, 2024, microchip technology company received us$162 million in chips financing. the funds raised by chips will be used to modernize and expand microchip factories in colorado and oregon.

chips funding will be used for two projects, including $90 million to modernize microchip's facility in colorado springs, colorado, and $72 million to help microchip expand its facility in gresham, oregon. the funding is expected to help microchip triple production at those plants and reduce its reliance on foreign production.

absolics: $75 million

absolics is the first semiconductor materials and component supplier to receive chips act subsidies.

on may 23, 2024, the u.s. department of commerce and absolics, a subsidiary of south korea's skc, signed a non-binding preliminary terms memorandum (pmt) to provide up to $75 million in direct funding under the chips and science act. the chips investment will support the construction of a 120,000-square-foot facility in covington, georgia, and the development of substrate technology for advanced packaging of semiconductors.

currently, the advanced packaging substrate market is concentrated in asia, and as a result of this proposed chips investment, u.s. companies will expand domestic supply of glass substrates for advanced packaging.advanced packaging is an important part of u.s. companies' efforts to improve semiconductor applications. the road to advanced packaging starts with the substrate, which is the foundation upon which systems are built. absolics glass substrates will be used as an important advanced packaging technology to improve the performance of cutting-edge chips used in ai, high-performance computing and data centers by reducing power consumption and system complexity. absolics produces glass substrates that enable smaller, denser, and shorter connections, enabling faster, more energy-efficient computing.

hp: $50 million

on august 27, 2024, hp announced that it had signed the preliminary terms of a $50 million award proposed by the u.s. department of commerce under the chip and science act to support its microfluidic semiconductor factory in corvallis, oregon.

microfluidics is the study of the behavior and control of fluids at the microscopic scale. microfluidics has the potential to drive revolutionary change across industries, delivering speed, efficiency and precision that will pave the way for the next generation of life sciences and technology innovation.

u.s. commerce secretary gina raimondo said: "the biden-harris administration's proposed investment in hp demonstrates that we are investing in every part of the semiconductor supply chain and the impact of semiconductor technology on drug discovery and innovation in critical life sciences equipment. importance."

bae systems: $35 million

on december 11, 2023, the white house announced that it would provide subsidies for u.s. semiconductor manufacturing for the first time under the 2022 chip and science act. the first company to receive subsidies was bae systems. bae systems will receive $35 million to modernize its microelectronics center (mec) in nashua, new hampshire.

bae systems' mec is a 110,000-square-foot department of defense (dod) certified semiconductor chip manufacturing and foundry that produces technology for dod applications. mec develops advanced semiconductor technologies beyond commercially available technologies to meet demanding military requirements. it is one of the only defense-focused six-inch gallium arsenide (gaas) and gallium nitride (gan) high electron mobility transistor (hemt) wafer foundries in the country.

conclusion

as more companies receive chips act awards, the united states will undoubtedly continue to improve its self-sufficiency capabilities. commerce secretary gina raimondo has previously stated that all these chip manufacturers that receive subsidies must be in production before 2030. although currently, the united states only produces about 12% of the world's chips, its goal is to increase this to 20% by 2030.the semiconductor industry may be beginning a new era in which more chip manufacturing will move to the united states.