With the CHIPS For America law, it is planned to provide financial support of up to $ 10 billion for 3nm chip production projects. Thus, dependence on outside will be reduced.
Although it includes the best chip designers, when it comes to breakdown, problems begin for the USA. While Taiwanese TSMC and South Korean Samsung are taking the lead, Intel grapples with shortcomings. Tech giants are determined to put an end to this.
Billion dollar fund
Semiconductor Industry Association formed by companies such as Nvidia, AMD, Intel, IBM, Qualcomm; By writing a letter to the Biden government, he wants to speed up the draft bill, shortly defined as CHIPS for America, in order to reduce chip imports.
The CHIPS bill aims to offer advantages such as funding projects and initiatives or tax incentives to reduce the US dependence on foreign chips in chip production. Chip production, production equipment design, equipment production and any related R&D work will be covered by the law.
According to the bill, individual initiatives can be funded up to $ 3 billion. Entrepreneurs are required not to join the partnership or transfer technology from foreign companies. This fund will be reserved for those who make a positive contribution to the role of the USA in the chip market.
On the other hand, the funds allocated for larger projects are greater. A budget of 10 billion dollars was allocated to 3 categories, which are 3nm manufacturing process development, supply chain establishment and chip verification. Until 2025, a budget of 10 billion dollars will be used every year.
According to the scenario, Intel is expected to get rid of its problems with the chip mobilization, which will reach up to hundred billion dollars. Thus, Intel’s capacity will be able to manage the process from scratch until new projects are developed. At the end of the 5-year period, a significant production capacity is expected to be formed in the USA.