Industry News

Ministry of Commerce: will Limit the Size of Government Subsidies to Chip Companies

Update time : 2022-08-02 13:56:26

According to Reuters, the U.S. Department of Commerce said on Friday (29) that it would limit the size of subsidies for semiconductor manufacturing under the chip bill and would not allow companies to use the funds to "pad".

Prior to that, on July 28, the U.S. House of Representatives gave final approval to legislation providing $52 billion in government funding to boost semiconductor manufacturing and research. President Biden is expected to sign the bill early this week.
The Commerce Department told Electronic Components companies that the subsidies would "not exceed the amount that would be generated to ensure that the program operates within the United States," adding that the department would discourage "competitive subsidies among states and localities," according to the report.
Pramila Jayapal, chairman of the Congressional Progressive Caucus, said the group supported the legislation after lengthy negotiations with Commerce Secretary Gina Raimondo, following concerns that chip companies would use the money to buy back stock or pay dividends.
A caucus spokesman said Friday that "progressives were able to vote for the bill, confident that the department would ensure that the funds could not be used for corporate self-enrichment."
The U.S. Department of Commerce said applicants must provide detailed financial information and projections for proposed projects and capital investment plans: "The department will carefully review this information and ensure that companies are not padding their size in order to claim excess awards."
The Commerce Department also promised to give preference in subsidies to companies that "commit to invest in the development of the domestic semiconductor industry in the future," rather than to companies that make stock buybacks.
However, the legislation does not prohibit companies receiving government funding from repurchasing stock, but it does prohibit grant funds from being used for repurchases.
Companies receiving funds would be prohibited for 10 years from engaging in "significant transactions in China or other relevant countries involving the expansion of any leading semiconductor manufacturing capability or materials intended for export to the United States and other countries for traditional semiconductor manufacturing capabilities.

Previous : Nexperia Ultra-Low Capacitance ESD Protection Diodes Protect Automotive Data Interfaces

Next : Return to the original intention Intel focuses on core chips: Six non mainstream businesses have been sold

How many chips does a car need?

Sep .19.2024

Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to

Position and Function of Main Automotive Sensors

Sep .18.2024

The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The

Chip: The increasingly intelligent electronic brain

Sep .14.2024

In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo

LDA100 Optocoupler: Outstanding Performance, Wide Applications

Sep .13.2024

In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install

About Us

About Us What we do Quality People

Products

CHIP/IC Active devices Passive device Components OTHER

China electronic components supplier----Wah Luen Shing Electronic.----www.wlschip.com

Leave a message