Not me. If the government gave me $5 billion, I’d open a LowEnd hosting company and give away free VPSes to everyone.
No, it’s Texas Instruments, who is slated to receive $1.6 billion in Chips Act grants and $3 billion in loans, as announced by the Biden administration on Friday. This initiative is a part of a national effort to enhance the American semiconductor manufacturing capability.
The allocated funds are intended for the construction of one factory in Utah and two in Texas, with an overall projected expenditure of about $18 billion through 2029, according to a statement by the Commerce Department. This venture is anticipated to create approximately 2,000 manufacturing jobs and several thousand additional jobs in construction.
Overall, Texas Instruments has outlined plans to invest about $40 billion in both states, which includes plans for an additional two factories in Sherman, Texas, set to be operational post-2030. The Commerce Department has emphasized the importance of prioritizing projects that will be completed by the end of this decade.
The company, known for manufacturing a diverse range of semiconductor chips and holding the largest customer base in the industry, also expects to gain from 25% tax credits provided under the 2022 Chips and Science Act. This benefit is projected to value between $6 billion to $8 billion, as per the company’s statement.
The Chips Act represents the United States’ most significant move towards industrial policy in decades, earmarking $39 billion in grants, alongside $75 billion in tax incentives, loans, and guarantees to encourage domestic semiconductor production. This shift comes after years of production moving towards Asia. Officials have distributed most of these funds through over a dozen initial awards and plan to announce the complete list of recipients by the end of the year.
A substantial portion of this funding is directed towards the production of advanced semiconductors by entities like Intel Corp. and Taiwan Semiconductor Manufacturing Co. The legislation also guarantees at least $2 billion for the production of basic, or legacy, semiconductors, which are manufactured by companies like Texas Instruments. With the recent announcement made on Friday, this minimum funding requirement has been met. Additionally, another significant legacy chip award was a $1.5 billion grant allocated to GlobalFoundries Inc.
Legacy chips, crucial for the global economy, power various devices from smartphones to refrigerators, and military equipment. The increased interest of China in this sector has sparked concerns. The US and the European Union have grown alarmed with China investing heavily in these processors. As a countermeasure, President Biden declared in May the increase of tariffs on these Chinese imports to 50%.
The grant awarded to Texas Instruments is set to secure a safe, domestic source of essential semiconductors which form the basis of nearly all modern technologies, according to Under Secretary of Commerce Laurie E. Locascio.
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grown alarmed? for what ? for lost power ?
Maybe because the Chinese gov’t is committijg genocide….? Because the Chinese gov’t is expansionist and aggressive and has openly stated plans to invade independent foreign countries like Taiwan? Just spitballing here.
Oh, I thought it was going to be RackNerd based on all the other posts around here
LOL. I’m pretty sure RackNerd is a net payer of taxes into the government :-)