US to Provide Intel with 26 Trillion Won in Support Including 11 Trillion Won Semiconductor Subsidies

The U.S. government has decided to provide up to $19.5 billion (approximately 26 trillion KRW) in funding to its domestic semiconductor manufacturer Intel.

President Joe Biden of the United States [Photo by Yonhap News]

On the 20th (local time), the White House announced in a statement that "the Department of Commerce has reached a preliminary agreement to provide Intel with up to $8.5 billion (about 11.4 trillion KRW) in direct funding and $11 billion (about 14.8 trillion KRW) in loans under the Chips Act." On the same day, President Joe Biden plans to announce this in person during a visit to Chandler, Arizona.

This support is based on the Chips Act. It aims to encourage semiconductor companies to invest in facilities within the United States. Companies building factories in the U.S. will receive a total of $39 billion (about 52.3 trillion KRW) in semiconductor production subsidies and $13.2 billion (about 18 trillion KRW) in research and development (R&D) grants, totaling $52.7 billion (about 70.7 trillion KRW) over five years.

The U.S. government is also reported to plan to provide Samsung Electronics, which has invested in the U.S., with subsidies exceeding $6 billion (about 8 trillion KRW) under the Chips Act.

[Image source=Yonhap News]

On the 15th, Bloomberg News reported, citing multiple sources, that the U.S. government would announce a semiconductor subsidy plan for Samsung Electronics by the end of this month. There are also reports that the U.S. Department of Commerce has decided to provide $5 billion (about 6.7 trillion KRW) in subsidies to Taiwan's semiconductor company TSMC.

The White House expects this to create about 30,000 jobs in the U.S. and support hundreds of thousands of indirect jobs. Additionally, it added that during President Biden's visit to Arizona, key agendas presented in the State of the Union address, such as 'Invest in America,' will be discussed.

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