The US Government and Intel Are Discussing Semiconductor Subsidies Worth 10 Trillion Won
It is reported that the US Government and Intel Are Discussing a plan to provide an amount of 10 trillion won to Intel through subsidies under the Semiconductor Act.
According to a report by Bloomberg News on the 18th, citing a local source familiar with the matter, the amount that the U.S. government is considering providing support to Intel is more than $10 billion (approximately KRW 13.355 trillion), and if successful, the amount will be extended after the implementation of the Semiconductor Act. becomes the maximum amount. It is reported that this support will include both direct grants and loans. While the U.S. Department of Commerce and Intel declined to comment, sources emphasized that discussions between the two sides are still ongoing.
The U.S. semiconductor law aims to provide $39 billion in production subsidies and $75 billion worth of loans and loan guarantees to encourage semiconductor companies to invest in domestic facilities. In December of last year, the U.S. Department of Commerce decided to provide subsidies for the first time to BAE Systems, a British defense company that produces semiconductors for U.S. military fighter jets such as the F-35, and last month selected Microchip Technology, a domestic semiconductor company, as the second beneficiary.
A subsidy of $162 million was allocated to Microchip Technology. Commerce Minister Gina Lemondo said in a foreign press interview on the 5th of this month that additional support targets will be announced within the next 6 to 8 weeks and that “we are in a very complex and difficult negotiation process with these companies.” Minister Lemondo said that the targets currently being considered for support are very complex and first-of-its-kind facilities, adding, “The types of facilities that TSMC, Samsung, and Intel are proposing to build in the U.S. are new generation investments and are unprecedented in the U.S. in terms of scale and complexity.” It was also explained.
Intel is currently building a $20 billion semiconductor factory in Ohio, USA, and is also undergoing expansion work at its Arizona factory, spending $20 billion. $3.5 billion has also been invested in New Mexico. Intel CEO Pat Gelsinger has recently argued that the U.S. semiconductor industry is lagging behind Asian competitors such as Taiwan’s TSMC and Samsung Electronics, and has emphasized that the company’s large-scale investment plans as a leading company depend on support from the U.S. government.
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