Taiwan Semiconductor Manufacturing Co. (TSMC) and GlobalFoundries, along with another unnamed chipmaker, are reportedly set to receive their final awards under the U.S. Chips and Science Act. The Commerce Department recently informed Congress that three companies are close to securing final agreements, two individuals briefed on the negotiations confirmed. As stipulated by the Act, the Commerce Secretary must provide Congress with a 15-day notification before finalizing any award exceeding $10 million.
This notification marks a step forward in the rollout of Chips Act funding, addressing previous concerns over delays. The act, passed with bipartisan support in 2022, allocates $37 billion in funding to incentivize chipmakers to establish or expand production facilities within the U.S. Of the 21 companies involved, only one award has been finalized to date—$123 million granted to Polar Semiconductor for upgrades to its Bloomington, Minnesota facility.
While the exact timing and amount of the upcoming awards remain unclear, sources expect these final awards to approximate the sums initially proposed. TSMC’s U.S. division received a preliminary award of $6.6 billion in April to support advanced semiconductor production in Phoenix, Arizona. Earlier this year, GlobalFoundries was preliminarily awarded $1.5 billion to construct a new facility in Malta, New York, and expand operations in Burlington, Vermont.
The Biden administration’s notification to Congress about these final awards indicates progress, though there is apprehension among some recipients regarding potential political shifts. Former President Donald Trump recently criticized the Chips Act on Joe Rogan’s podcast, arguing that high tariffs could have achieved similar goals without direct subsidies. In a separate statement, Republican House Speaker Mike Johnson hinted at possible repeal discussions but later clarified that the party had not formalized an agenda.
In addition to political uncertainties, the rollout has faced scrutiny from community groups concerned about transparency in the award process, particularly regarding labor, environmental, and chemical standards, which led the administration to delay further announcements until after the election. Sources familiar with the matter also indicated that negotiations over labor and childcare provisions have extended the timeline for finalizing agreements.
Amid these delays, companies continue to urge the Department of Commerce to expedite the process. Intel, which has been awaiting $8.5 billion in grants, stated that it remains committed to contributing to a competitive U.S. semiconductor ecosystem and encouraged the government to streamline the award process to meet shared industry goals.
Featured image courtesy of Yahoo Finance
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