Chipmakers hoping to faucet into the Biden administration’s $39 billion semiconductor manufacturing subsidy program might want to signal agreements promising they received’t broaden manufacturing capability in China. The requirement was amongst a handful of funding situations the US Commerce Division outlined this week after it will start accepting purposes for cash from the CHIPS Act in late June. Congress the $280 billion measure final July in a uncommon present of bipartisan cooperation and put aside $52 billion in tax credit and funding for US semiconductor companies to broaden home manufacturing.
“Recipients can be required to enter into an settlement limiting their capacity to broaden semiconductor manufacturing capability in international nations of concern for a interval of 10 years after taking the cash,” Commerce Secretary Gina Raimondo informed reporters, per the . Raimondo didn’t title China by title. Nevertheless, the superpower is among the many nations the US authorities considers a “international nation of concern.”
Moreover, Raimondo stated CHIPS Act recipients can’t “knowingly have interaction in any joint analysis or know-how licensing effort with a international entity of concern that includes delicate applied sciences or merchandise,” a requirement doubtless designed to discourage home companies from signing agreements just like the one Ford lately .
“I additionally need to be clear that no CHIPS {dollars} may be spent on inventory buybacks,” Raimondo stated. “That is about investing in our nationwide safety, not enabling these corporations to make use of our cash to extend their income.” The Commerce Division can even require corporations making use of for greater than $150 million to stipulate how they plan to supply reasonably priced childcare to employees, a funding situation Raimondo stated displays the present labor market. In some situations, the company might require those self same recipients to return among the cash they obtain from the CHIPS Act to the federal government in the event that they generate extra income.
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