Chipmakers slow US moves as CHIPS act languishes - Mobile World Live

Chipmakers slow US moves as CHIPS act languishes

05 JUL 2022

Leading global chipmakers including Intel and Taiwan Semiconductor Manufacturing Co (TSMC) revised plans to boost their semiconductor manufacturing capacity in the US, as uncertainties grow over approval of the CHIPS for America act, which would provide subsidies for new investments, Nikkei Asia reported.

Intel reportedly halted construction of a $20 billion chip facilities in Ohio as it awaits the act being passed by Congress. The company told Nikkei Asia since approval of funding for the scheme has been slow, it doesn’t know when the plant will be completed.

TSMC unveiled plans to build a $12 billion chip plant in Arizona in May 2020, but noted recently construction will take longer without subsidies, the newspaper stated. The company planned to begin production in 2024.

Kung Ming-Hsin, minister of Taiwan’s National Development Council and a TSMC board member, said the company began construction because it believed “the CHIPS Act will be passed by Congress”, Nikkei Asia wrote.

The CHIPS act was introduced to strengthen US chip manufacturing and reduce reliance on components make in China, offering generous tax breaks and other subsidies.

US-based contract chipmaker GlobalFoundries told Nikkei Asia the timing of construction of a planned $1 billion chip plant in New York depends on the act being passed.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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