The US Department of Commerce has ruled that chip manufacturers must forego expansions in China for ten years if they want $39 billion in government support. Money from the fund will be used to support the American semiconductor industry.
The US Department of Commerce has urged local semiconductor manufacturers to apply for government subsidies under the Chip Act, a program designed to combat the Chinese technological threat. "Recipients will be required to enter into an agreement limiting their capacity to expand semiconductor manufacturing capacity in foreign countries of concern for ten years after receiving the money," Ms. Raimondo said.
The official stated that companies who received funding should not "knowingly engage in any joint research or technology licensing with a foreign organization of concern about important technologies or products." Last year, the US Congress passed the "Chip Act," which allows for the mass-production of advanced semiconductor goods, which till now are mostly manufactured in Taiwan.
Subsidies to state subsidies will have to agree to other conditions. If the amount of money exceeded $150 million, the company will have to return some of it to the state after it has reached the established level of income. The funds allocated to businesses will not be used to buy back their own shares or pay dividends. Affordable childcare for its employees may also be added to the $39 billion allocated for the development of the industry.
If you notice an error, click it with the mouse and press CTRL + ENTER.