Washington DC
The US Department of Commerce has opened the application process for companies to receive semiconductor manufacturing subsidies under the $53bn Chips Act, say Yuka Hayashi and Asa Fitch in The Wall Street Journal. Recipients must refrain from expanding chip-making capacity in China and “countries of concern” for ten years, and the Pentagon will also gain “secure access” to “leading-edge” chips made at the facilities in the US being funded. The US buys 90% of its advanced chips from Taiwan – “a national security vulnerability that is untenable”, says commerce secretary Gina Raimondo. Recipients must not use the grants to pay dividends and they must declare any intentions to buy back stock for five years. Firms receiving more than $150m will hand over “a portion” of the profits from facilities generating an unexpectedly big profit. As part of the government’s social agenda, unionised workers should also be employed in the construction of the facilities, such as those detailed in plans unveiled by Intel, Taiwan’s TSMC and South Korea’s Samsung – leading
