US: "Over 600 Semiconductor Investment Letters of Intent... Many Will Not Receive Subsidies"

U.S. Secretary of Commerce Gina Raimondo officially confirmed that more than 600 letters of intent for investment have been submitted by companies seeking subsidies to encourage semiconductor investment within the country. Accordingly, the subsidies that applicant companies will actually receive are expected to fall far short of the amounts these companies desire.

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On the 26th (local time), Secretary Raimondo stated at a discussion hosted by the Washington DC think tank Center for Strategic and International Studies (CSIS) regarding the CHIPS and Science Act (CSA) that "companies have submitted more than 600 letters of intent to the Department of Commerce." This figure far exceeds the previously known 460 submissions. Raimondo said, "The harsh reality is that a significant number of companies expressing interest will not receive funding."

The U.S. government enacted the CSA, which provides a total of $39 billion (approximately 52 trillion KRW) in semiconductor production subsidies and $13.2 billion (approximately 18 trillion KRW) in research and development (R&D) support over five years, totaling $52.7 billion (approximately 70 trillion KRW) to encourage semiconductor investment by companies building production facilities domestically.

In particular, although the semiconductor production subsidies amount to $39 billion, it has been confirmed that the funds requested by leading-edge semiconductor companies exceed $70 billion (approximately 93 trillion KRW). Secretary Raimondo also mentioned that in order to maximize the effect of the limited subsidies, the Department of Commerce is effectively squeezing companies during subsidy negotiations. She said, "When semiconductor company CEOs come and request tens of billions of dollars, I say, 'It's a reasonable request, but if you get even half of that amount, consider yourself lucky.' When they come back to finalize the agreement, they receive less than half of what they initially wanted, and they say, 'I guess I'm unlucky.' That's the reality."

Additionally, Secretary Raimondo evaluated that the original goal of establishing two large-scale advanced logic semiconductor production clusters is likely to be exceeded. It is projected that by 2030, about 20% of the world's most advanced logic semiconductor production will be possible in the United States. Currently, the U.S. does not produce any advanced logic semiconductors.

Secretary Raimondo also mentioned that a "second CHIPS and Science Act" may be necessary in the future. So far, the Department of Commerce has announced subsidy plans for three companies: the UK defense contractor BAE Systems, U.S. semiconductor company Microchip Technology, and GlobalFoundries. Currently, the industry is discussing the possibility that Intel, TSMC, and Samsung Electronics may receive subsidies.

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