"Only Intel Gets Subsidies? Samsung and TSMC Urge Inclusion in US Support Programs"

[Asia Economy New York=Special Correspondent Joselgina] Reports have emerged that Samsung Electronics and Taiwan's TSMC have requested the U.S. government to allow foreign companies to participate in the $52 billion federal funding program aimed at increasing semiconductor production within the United States. On the other hand, U.S. company Intel has argued that government subsidies should only be provided to domestic companies.

According to Bloomberg on the 28th (local time), TSMC responded to the U.S. Department of Commerce's request for information about the location of its headquarters by stating, "Arbitrary favoritism and preferential treatment based on headquarters location is not an effective and efficient use of subsidies." TSMC emphasized that the U.S. should not duplicate existing supply chains but should focus on developing advanced technologies to enhance competitiveness. They also urged immigration policy reforms to attract foreign talent that can contribute to U.S. innovation efforts.

Samsung Electronics conveyed a similar position to TSMC. Samsung Electronics argued that the U.S. government should allow all eligible companies, regardless of their nationality, to compete for government funding under "fair competition."

TSMC and Samsung Electronics are the world's first and second largest companies in the foundry (semiconductor contract manufacturing) sector. This request came as the U.S. Congress reviews the "America COMPETES Act," which provides $52 billion in federal funding to increase domestic semiconductor production. This stance emphasizing fair competition counters Intel's previous demands that subsidies based on U.S. taxes should only be given to domestic companies. The Biden administration has prioritized expanding domestic production capacity to improve supply chains following the semiconductor chip shortage caused by the pandemic.

Samsung Electronics and TSMC have already announced plans to invest hundreds of billions of dollars to build state-of-the-art factories in the U.S. Samsung Electronics is constructing a factory in Texas with a $17 billion investment, aiming to start mass production in two years. TSMC is investing $12 billion in Arizona to build a 5nm semiconductor chip production plant.

Bloomberg reported, "Previously, Intel insisted that U.S. taxpayers' money should only go to American companies, but recently, Intel CEO Pat Gelsinger has refrained from making such statements," adding, "Intel's technology is at least one generation behind competitors Samsung Electronics and TSMC."

Intel has also announced plans to build a $20 billion semiconductor chip hub in Ohio and two factories in Arizona.

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