Commerce Department on Track to Distribute $39 Billion in CHIPS Act Grants

In an effort to strengthen the semiconductor industry in the United States, the Commerce Department is making significant strides in the allocation of grant money under the CHIPS Act. Commerce Secretary Gina Raimondo has confirmed that the department is on course to disburse the entire $39 billion in grant money by the end of this year.

The purpose of these grants is to encourage semiconductor companies to expand their manufacturing production capabilities within the U.S. Earlier this week, the Biden administration revealed its decision to award Samsung with grants amounting to a total of $6.4 billion. This funding will facilitate the expansion of two chip plants in central Texas, leaving approximately $16 billion in subsidies to be distributed before the end of 2024. Secretary Raimondo expressed confidence that the entirety of the funds specified in the CHIPS Act will be allocated by the end of 2022.

Distribution of Awards

Raimondo emphasized the progress made in award announcements, which have predominantly centered on leading-edge chips, the most advanced type of semiconductors. Notably, Intel is set to receive up to $8.5 billion in incentives for various projects, spanning across Arizona, New Mexico, Ohio, and Oregon. Meanwhile, Taiwan Semiconductor is slated to benefit from grants totaling up to $6.6 billion for its projects in Arizona. As the distribution of the largest grants nears completion, upcoming award packages will prioritize memory chips and investments in suppliers, wafers, and chemicals, according to Raimondo.

The recent grant awarded to Samsung will play a pivotal role in establishing an "advanced manufacturing ecosystem" in central Texas. This initiative will enable the consolidation of multiple stages of the chip production process on a single campus at the Taylor facility. Secretary Raimondo highlighted that this facility will be twice the size of Samsung's flagship site in South Korea, painting a picture of a comprehensive manufacturing hub that will attract various suppliers and contribute to research and development, packaging, manufacturing, and job training. This move is anticipated to bolster America's strength and security in the semiconductor industry.