The Biden administration plans to award subsidies to top semiconductor companies, such as Intel and TSMC, to build new factories in the United States. The aim is to ramp up advanced semiconductor manufacturing for smartphones, AI, and weapons systems. Announcements are expected before President Biden’s State of the Union address. Intel has ongoing projects in Arizona, Ohio, New Mexico, and Oregon, with a total cost of over $43.5 billion. TSMC is constructing two plants near Phoenix with a $40 billion investment. Other contenders include Samsung Electronics, Micron Technology, Texas Instruments, and GlobalFoundries. In December 2023, the US Commerce Secretary announced funding awards for semiconductor chips as part of the “Chips for America” program.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| US government subsidies for semiconductor companies | Increase in domestic semiconductor manufacturing | Increased production and innovation in US semiconductor industry | National security and economic competitiveness |