The Chips act is also furnished with a 25 percent investment tax credit for setting-up semiconductor factories worth $24 billion
A day back, the Commerce Department in the US has stated that more than 460 firms have shown their interests in grabbing the semiconductor subsidy under the US Chips and Science Act in an effort to grow the nation’s competitiveness with China’s technology and science ecosystem.
The government officials in the White House are now celebrating the one-year anniversary on August 9 when the incumbent President Joe Biden signed the historic Chips Act offering a subsidy of $52.7 billion for US chip manufacturing, research and development. In a media briefing, the President Biden added that a year back, several firms have announced the investment of $166 billion in electronics and semiconductor manufacturing and the new CHIPS Act will turn US again into a global hub for semiconductors and will rely less on other countries for their electronics or clean energy supply chains.
Back in June, the commerce department started receiving the applications for the $39-billion subsidy scheme for chip production in the country as well as equipment and materials for manufacturing chips, but the applications are yet to be finalized. Commerce Secretary Gina Raimondo told reporters, "We’re finally making the investments that are long overdue to secure our economic and national security. We need to move quickly but it’s more important we get it right."
Moreover, a senior official in the commerce department has told the media that the department is doing the process very rapidly and discussions with the applicants are still going on and it is expected towards the end of the month that key progress will be announced. The Chips act is also furnished with a 25 percent investment tax credit for setting-up semiconductor factories worth $24 billion.
Intel CEO Pat Gelsinger said on Tuesday, "Governments around the world are working at a historic pace to revitalize semiconductor manufacturing and ensure a robust, resilient supply chain. In the US, progress is undeniable.” Last year, the Commerce Department set-up a group of 140 people and penned rules and regulations for scrutinizing and approving the applications. According to an exclusive report of Reuters, the department previously said direct funding awards are expected to range between 5-15 percent of project capital expenditures and total award amounts generally not exceed 35 percent of project capital expenditures.
