White House stimulates construction of chip manufacturing plants in U.S.
The U.S. is encouraging the construction of factories for the production of microchips (photo: Getty Images)
The White House intends to allocate billions of dollars in subsidies to leading American semiconductor companies, allowing them to expand their manufacturing capabilities in the U.S., according to Reuters.
The administration of U.S. President Joe Biden aims to ensure that cutting-edge microchips used in smartphones, artificial intelligence development, and modern defense systems are manufactured in the U.S.
Potential recipients of the subsidies include Intel and the Taiwan Semiconductor Manufacturing Co TSMC. South Korean company Samsung Electronics is also a contender for a grant from the White House.
In December last year, U.S. Commerce Secretary Gina Raimondo said she would make around a dozen funding awards for semiconductor chips within the next year, including multi-billion dollar announcements that could drastically reshape U.S. chip production.
Recent Developments
Initiatives to exert economic pressure on China, including the imposition of certain trade restrictions, have become more frequent in the U.S. and European Union.
It is noted that the EU and the U.S. are discussing the possibility of close collaboration to address risks associated with investing in sensitive technologies in countries such as China.
Additionally, in the summer of 2023, the U.S. and the Netherlands implemented new restrictions affecting Chinese semiconductor manufacturers.
Furthermore, the U.S. later announced plans to take additional measures to prevent American semiconductor manufacturers from selling semiconductors to China, circumventing government restrictions.
