The main content of the “Chip Act”
①It is planned to allocate about 52 billion US dollars within 5 years.
② A four-year 25% tax reduction to encourage companies to build factories in the United States to manufacture chips, with a total reduction of about $24 billion.
③ However, if the company invests in semiconductor manufacturing in mainland China, it cannot receive subsidies.
④ If a company obtains subsidies for building a factory in the United States, it cannot expand its investment in China’s advanced process chips (14nm and below) within 10 years, but there are no restrictions on mature processes.
This means that for companies that want to receive the $52 billion in subsidies from the United States, they have to make a “choose one”, and the time is 10 years.
Behind the “Chip Act”
There is an urgent need for the United States to improve the structure of the semiconductor industry. Undoubtedly, American companies have indeed taken the lead in the semiconductor field. Among the top ten semiconductor leaders, 6 are from the United States. But U.S. companies are not infallible when it comes to semiconductors.
Most of the world’s advanced semiconductor component manufacturing bases are located in Asia. Nikkei reported that in recent years, the proportion of semiconductor shipments in Taiwan, China, and South Korea has continued to increase. Today, Asia’s semiconductor exports have accounted for 80% of the world’s total.
American chip design companies, including Apple, Qualcomm, and Broadcom, rely heavily on Asian foundries for most of their chip production.
As we all know, the chip production base is too concentrated, and the ability to respond to uncontrollable risks such as natural disasters and international situations will also be reduced. Once the supply chain is interrupted or damaged, American chip design companies will face immeasurable losses.
According to reports, the current share of the United States in the global semiconductor market has dropped from 40% to 12%. Global Wafer said that by 2025, the existing semiconductor silicon wafer production capacity in the United States can only meet 20% of the domestic demand in the United States, and these existing semiconductor silicon wafers are technologically backward and cannot be used to make Intel, TSMC and other companies. The latest development of advanced chips.
Based on this, in order to reduce the dependence of chip manufacturers on Asian foundries, the United States has begun to revive the semiconductor industry.
TSMC and the “Chip Act”
Recently, the 82-year-old woman met with Liu Deyin, chairman of TSMC. The focus of the talks will focus on the implementation of the recently passed “Chip and Science Act”, which provides $52 billion in federal subsidies for domestic chip factories in the United States.
According to reports, the current share of the United States in the global semiconductor market has dropped from 40% to 12%. Global Wafer said that by 2025, the existing semiconductor silicon wafer production capacity in the United States can only meet 20% of the domestic demand in the United States, and these existing semiconductor silicon wafers are technologically backward and cannot be used to make Intel, TSMC and other companies. The latest development of advanced chips.
Based on this, in order to reduce the dependence of chip manufacturers on Asian foundries, the United States has begun to revive the semiconductor industry.
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