President Biden’s Administration looks to award billions in U.S. investment dollars to major semiconductor companies located in the nation’s key battleground states.
Investment announcements have been earmarked by industry executives familiar with negotiations, as reports the Wall Street Journal.
The companies that are most likely to be backed by government funding are Intel, Taiwan Semiconductor Manufacturing Company Limited (TSMC) and Samsung to name a few.
The news comes as the election trail heats up in America. The future of chip-making and semiconductors are a key talking point more than a year on from the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (Chip Act).
What is the Chip Act?
The act signed into law in August of 2022 was designed to boost the chip-making and semiconductor industry of America.
Over $280 billion was allocated to boost U.S. competitiveness, innovation and national security over ten years.
The announcement, made by the White House stated these investments made by the Chip Act “will strengthen our Nation’s manufacturing and industrial base; create well-paying, high-skilled jobs in construction, manufacturing, and maintenance; catalyze regional economic development throughout the country; bolster United States technology leadership; and reduce our dependence on critical technologies from China and other vulnerable or overly concentrated foreign supply chains.”
In total, $52.7 billion of the act’s funds are allocated for semiconductor manufacturing, R&D, and workforce development, with another $24 billion worth of tax credits for chip production.
In December 2023, the Biden Administration allocated $35 million to BAE Systems for a facility in New Hampshire to produce semiconductors.
Intel has broadened its investment in states such as Arizona, Ohio, New Mexico, and Oregon and Samsung has a $17.3 billion project that has taken shape since 2021 in Dallas.
With the Chip Act set to bolster the employment and manufacturing industries of these states, Democrats will hope voters will back the incumbent President when Americans go to the polls in November.
Biden Administration keen to highlight economic wins
As the election’s media cycle starts to heat up there is a set pattern to the administration currently roosting in the White House.
Investment in emerging technology, cybersecurity and manufacturing has been a consistent narrative of the current administration.
The economic delivery and stewardship of employment, economic growth and investment are key pillars of any re-election push.
Those residing in the White House will hope this consistent investment in America’s future will linger long in the minds of American voters that live in the key-battleground states.
Image credit: Arron Kittredge, Pexels.
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