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Semiconductor makers that want to take advantage of the Biden administration’s $39 billion semiconductor manufacturing subsidy program must sign a deal promising not to expand production capacity in China. The requirement was one of several funding terms outlined this week by the US Department of Commerce. We will start accepting applications for money from the CHIPS Act in late June. Congress last July saw him pass a $280 billion bill, demonstrating bipartisan cooperation and securing his $52 billion in tax credits and funding for U.S. semiconductor companies to expand domestic production. .
“The recipient must enter into a contract that limits their ability to expand semiconductor manufacturing capacity in the foreign country of interest for 10 years after receiving the money,” Commerce Secretary Gina Raimond told reporters. Raimondo did not name China. But this superpower is one of those countries that the US government considers a “foreign country of concern.”
Additionally, Raimondo said that CHIPS recipients cannot “willfully engage in joint research or technology licensing efforts with interested foreign parties involving highly sensitive technology or products.” I was.
“We also want to clarify that CHIPS dollars cannot be used to buy back shares,” Raimondo said. “This is investing in national security, not allowing these companies to use our money to make a profit.” The Commerce Department will also apply for more than $150 million. It will require companies to outline plans to provide affordable childcare to workers, and Raymond said the financing terms reflect the current labor market. is. In some cases, government agencies may require that some of the money received from the CHIPS Act be returned to the government if the same recipient has generated excessive profits.
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