The USA passed a new bill to solve the semiconductor chip crisis and imposed some restrictions on manufacturing companies. Chip manufacturers, who receive subsidies and financial incentives from the federal government, are banned from producing in countries that pose a “national security threat” such as China.
The USA will give financial support to those who do not produce in China with the chip law
The US Senate has officially approved the Chips and Science semiconductor manufacturing subsidies. As a result of US President Biden’s signing of the bill, new subsidies will be provided to companies producing chips. These companies will be given the opportunity to increase their investments in the USA and create new production capacities for semiconductors.
Today, multiple companies such as GlobalFoundries, Intel, Samsung Foundry, TSMC and Texas Instruments manufacture semiconductors in the USA. With the new bill, they will receive $75 billion in financial subsidies and incentives. However, the USA imposes certain conditions on companies that it provides investment opportunities.
The new bill prevents investment in “countries that pose a national security threat” for the United States. It prohibits the expansion of production or the construction of new factories for semiconductors in these countries. It should be noted that China, Iran, North Korea and Russia are on the threat list.
TSMC and Samsung have production lines in both the USA and China. Although it is not known what these companies will do for now, they have huge investments in China. If they don’t cancel according to the bill, they will not receive subsidies and financial incentives from the federal government.
Samsung seems a little luckier in this regard. Because the Samsung Semiconductor brand operates their production in China. It can make this brand a different company and continue to get help from the USA, but TSMC has no such luck.
So what do you think about the US chip law? You can share your views with us in the comments section.
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