"US Semiconductor Support Policy... Samsung, TSMC, Intel Expected to Be Beneficiaries"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the U.S. Biden administration's bill to inject $52 billion (about 60 trillion won) into the semiconductor industry is passing through the White House and the Senate and is about to be approved by the House of Representatives, it is expected that Samsung Electronics, Intel, and TSMC will benefit from this bill.

According to the industry on the 11th, credit rating agency Fitch stated in a report earlier this month that "foundry providers producing cutting-edge semiconductors will be the beneficiaries of the policy." It also evaluated that KLA and ASML, which manufacture equipment necessary for advanced semiconductor production, will profit from the bill.

President Biden approved the U.S. Innovation and Competition Act (USICA) to resolve the semiconductor supply chain crisis and secure a stable global semiconductor supply chain. The bill, which passed the U.S. Senate last month, is currently awaiting approval from the House. The bill includes a budget of $250 billion for advanced technology development, of which $52 billion is allocated to semiconductor research, design, and manufacturing. The U.S. government expects that once this policy is implemented, private investment will be unlocked, leading to investments of $150 billion or the establishment of 7 to 10 U.S.-based factories.

Fitch stated, "The change in the global semiconductor supply chain has begun, and due to semiconductor shortages and economic impacts from U.S. trade policies, the U.S. government supports this change," adding, "If the USICA bill passes the House, significant support will be allocated to domestic semiconductor production to reduce supply chain risks and back semiconductor supply."

In particular, Samsung Electronics announced a $17 billion semiconductor investment in the U.S., and Intel and TSMC revealed plans to invest $20 billion and $12 billion respectively to build factories in Arizona. Fitch analyzed that "federal and state government support is essential to attract private investment and for projects to bear fruit." Fitch also explained that "the global semiconductor shortage has solidified the position of foundry companies," noting that TSMC recently raised prices by up to 20%, and some customers have prepaid costs to secure semiconductor supplies.

This content was produced with the assistance of AI translation services.