U.S. Government Subsidies for Semiconductor Companies

(Reuters) – The U.S. Department of Commerce has finalized a subsidy of more than $6.1 billion for Micron Technology (NASDAQ: MU), marking one of the largest government awards to chip companies under the U.S. CHIPS and Science Act.

Major Awards Under the CHIPS and Science Act:

Polar Semiconductor

• Funding: Up to $123 million in direct funding.
• Investment: Plans to invest about $525 million over the next two years to double production capacity at its Bloomingdale, Minnesota facility.

Texas Instruments

• Funding: Up to $1.6 billion in direct funding to support the construction of three new domestic facilities.

Micron Technology

• Funding: Finalized a subsidy of more than $6.1 billion to support the construction of several domestic semiconductor facilities.

Samsung

• Funding: Up to $6.4 billion allocated to expand facilities in Texas, following a preliminary memorandum of terms signed in April.

TSMC (Taiwan Semiconductor Manufacturing Company)

• Funding: Finalized a $6.6 billion government subsidy in November for its U.S. unit's semiconductor production in Phoenix, Arizona.

Intel

• Funding: Finalized a $7.86 billion government subsidy in November, reduced from $8.5 billion announced in March, after winning a separate $3 billion award from the Pentagon.

GlobalFoundries

• Funding: A $1.5 billion government subsidy finalized in November to build a semiconductor production facility in Malta, New York, and expand existing operations in Burlington, Vermont.

Microchip Technology

• Funding: Announced in January, the company will receive $162 million in government grants to triple production of mature-node semiconductor chips and microcontroller units at two U.S. factories.