The US will hand out billions in subsidies to chipmakers wanting to build advanced factories in the country.

US President Biden wants to distribute billions of dollars in subsidies to manufacturers of advanced chips. The Wall Street Journal knows this. The round of subsidies fits with the US’s strategic plans to bring more chip production to its own territory. The EU has similar ambitions, but is unable to raise the same large amounts of money.

Several contenders

The US money would flow into various projects, including new Intel factories in four different states with a total investment volume of 43.5 billion euros. The USA also wants to make additional money available to foreign chip manufacturers. For example, TSMC has projects underway for two factories and Samsung is also building one. President Biden’s administration plans to provide a financial boost to all of these new factories.

The funding round has not yet been officially announced and it is not yet clear exactly how many cents are involved. In any case, chip factories are very expensive systems. A single advanced CPU factory can easily cost nearly twenty billion dollars. Such locations are in demand, which is why manufacturers are looking for funding and are therefore guided when choosing a location for new factories.