US bans manufacturing in China with chip law

ABDsemiconductor solve the chip crisis passed a new bill to Chip makers receive subsidies and financial incentives from the federal government Chinese It was banned from being produced in countries that “pose a threat to national security”, such as

The US will give financial support to those who do not manufacture in China with the chip law

US Senate by resolution Semiconductor manufacturing subsidies for chips and science officially approved. As a result of the signing of the bill by the US President Biden, new subsidies will be provided to companies producing chips. These companies will be given the opportunity to increase their investment in the US and create new semiconductor manufacturing facilities.

Today GlobalFoundries, Intel, Samsung Foundry, TSMC ve Texas Instruments more than one company, such as US semiconductor manufacturers. With the new bill, they will receive $75 billion in financial subsidies and incentives. However, the US imposes certain conditions on companies that they provide investment opportunities.

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The new bill prevents investment in “countries that pose a threat to the national security” of the United States. for semiconductors in these countries production expansion or new to build factories forbids. It should be noted that China, Iran, North Korea and Russia are on the list of threats.

TSMC and Samsung have production lines in both the US and China. Although it is not yet known what these companies will do, they have huge investments in China. If they are not repealed under the bill, they will not receive subsidies and financial incentives from the federal government.

Samsung seems a little happier in this regard. Because their production is in China Samsung Semiconductor manages the brand. This could make this brand a different company and continue to receive aid from the US, but TSMC is not so lucky.

So what do you think about the chip law in the US? You can share your opinion with us in the comment section.

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