Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

Govt Subsidy Delays Forcing Global Chip Firms to Postpone Projects in US

- Advertisement -

Although the Inflation Reduction Act and the CHIPS and Science Act aims to grow the in-house chip industry of the US, the government is not providing capex and subsidies on time.

The government of the USA is now facing sudden challenges of delays in setting-up of the new semiconductor projects, which were approved under the Inflation Reduction Act and the CHIPS and Science Act. The policies were announced to boost the domestic green energy and semiconductor industry, thereby making it self-reliant to reduce dependence on other countries. 

Reports surfaced that the projects approved under the act with an investment of approximately 227.9 billion have faced delays from two months to several years. Now, the question is why? According to the government, around 114 ventures were approved with a total investment of $227.9 billion. The firms have mentioned that poor market conditions, unreliability in domestic policies, and slow demands have forced them to change their project plans. 

- Advertisement -

According to TrendForce, back on August 13, world’s largest semiconductor foundry TSMC, announced to invest $7.5 billion to set-up a new foundry unit in Arizona. With an investment of $65 billion, the company in the beginning had announced to construct three fabs in Arizona, but four years have passed, TSMC is yet to manufacture a single chip. Competition with Intel in regards to labor price, and cultural differences have provided barriers to TSMC in producing chips. 

Intel, on the other hand, has planned to invest $100 billion in the coming five years to build new fabs and expand existing units in Arizona, Oregon, New Mexico, and Ohio. The investment will be creating 20,000 on-site construction jobs, and 10,000 manufacturing jobs. USA’s other global media, the Wall Street Journal has penned that Intel has deliberately delayed the $20 billion project in Ohio owing to massive delays in government subsidies and market downturns. Ohio is expected to have two cutting-edge Intel fabs by 2025, but the completion of both the fabs has been delayed until 2026-27. 

The world’s largest semiconductor company, Samsung announced to set-up a state-of-the-art semiconductor cluster in Texas, including an advanced packaging unit, and two top-notch logic fabs with $6.4 billion in US subsidies. Construction of the first fab commenced in 2022 with 4-nm process capabilities. Again, the plant has delayed its operation until 2026 due to delays in government subsidies and the downturn of the foundry market. Reports also suggested that this delay may help Samsung upgrade the process from 4nm to 2nm. 

- Advertisement -

Most Popular Articles

US Startup Eagle Electronics Raises $14M, Eyes Manufacturing Expansion

0
Securing $14 million in state funding, Ohio electronics manufacturing startup Eagle Electronics eyes on boosting its Solon facility, incorporating advanced tech and partnerships to...
Representation Image

India’s Electronics Component Makers Urging For Dedicated PLI Scheme In Budget 25

0
The proposed Production-Linked Incentive (PLI) scheme for electronic components could address critical gaps in the domestic manufacturing ecosystem and reduce reliance on imports. Electronics component...
Clone Alpha Robots

Robotics Startup Clone Unleashes Full Humanoid Robot ‘Clone Alpha’

0
Instead of relying on conventional robotic components, Clone Robotics has crafted synthetic versions of human organ systems. Three years after showcasing a remarkable water-powered robotic...

VSMC Starts Construction Of $7.8B Fab In Singapore

0
Set to produce 55,000 wafers monthly by 2029, VIS and NXP's joint venture VSMC’s $7.8 billion semiconductor facility in Singapore breaks ground. VisionPower Semiconductor...
Representation Image

Dr. S Jaishankar Announces India-Japan Semiconductor Partnerships

0
The minister underscored the strategic importance of the emerging semiconductor collaboration among India, Japan, and Taiwan. At the 2nd India-Japan Forum in July 2023, External...

“SEMI Is Actively Working With Indian Universities, Institutions To Create India’s Semiconductor Academy” –...

0
India’s semiconductor industry is expected to face a significant talent shortfall, with a projected shortage of 250,000 to 300,000 professionals by 2027. In an...
Alex P. James From Digital University Kerala

“We Have Removed Traditional Classroom-Based Teaching And Transitioned To Experiential Learning” – Alex P....

0
For India to become a design powerhouse, it must focus on developing Indian-owned companies that can sell their IPs and products globally, not just...
Prassann Daphal, CEO, Evergreen Recyclekaro India

“Our Patented Method Now Extracts Lithium Carbonate At Over 90% Efficiency And 99% Purity...

0
In a conversation with EFY’s Nitisha Dubey, Prassann Daphal of Evergreen Recyclekaro India Private Limited highlights how plasma furnace technology transforms complex materials into...

Build Future-Ready Semiconductor Titans For India’s High-Tech Ascent To Global Semiconductor Leadership

0
Steve Sanghi of Microchip Technology speaks with Dr Satya Gupta from VLSI Society of India, sharing his insights into the future of chip technology...
Andy C Mackie, Principal Engineer - Advanced Materials, Indium Corporation

“Our Multi-Alloy System Enables Solder Joints To Form At Lower Processing Temperatures Without Sacrificing...

0
Liquid metal-based thermal solutions offer efficient cooling but face challenges like spillage and reliable thermal resistance in ultra-thin layers. Akanksha Sondhi Gaur and Nijhum...

US Startup Eagle Electronics Raises $14M, Eyes Manufacturing Expansion

0
Securing $14 million in state funding, Ohio electronics manufacturing startup Eagle Electronics eyes on boosting its Solon facility, incorporating advanced tech and partnerships to...
Alex P. James From Digital University Kerala

“We Have Removed Traditional Classroom-Based Teaching And Transitioned To Experiential Learning” – Alex P....

0
For India to become a design powerhouse, it must focus on developing Indian-owned companies that can sell their IPs and products globally, not just...

InsideFPV Drone Technology For Agriculture, Defence, And Accessible Consumer Solutions

0
InsideFPV Private Limited, a deep-tech drone company, was founded in July 2020 amid the Galwan Valley conflict between India and China. Founded by Arth Chowdhary,...
XP300

Precision PCB Assembly With Xaltan Systems’ Made-In-India Tech

0
As of 2024, this startup is recognised for its innovative desktop pick-and-place machine, transforming electronic prototyping and small-scale manufacturing. Efficiency, accuracy, and adaptability are the...

Canebot: A Robotic Vending Machine Serving Fresh Sugarcane Juice

0
Pune’s Canectar Foods Private Limited has introduced Canebot, a robotic vending machine designed to dispense fresh sugarcane juice. Founded in 2018 by Milind Datar and...

Industry's Buzz

US Startup Eagle Electronics Raises $14M, Eyes Manufacturing Expansion

0
Securing $14 million in state funding, Ohio electronics manufacturing startup Eagle Electronics eyes on boosting its Solon facility, incorporating advanced tech and partnerships to...
Representation Image

India’s Electronics Component Makers Urging For Dedicated PLI Scheme In Budget 25

0
The proposed Production-Linked Incentive (PLI) scheme for electronic components could address critical gaps in the domestic manufacturing ecosystem and reduce reliance on imports. Electronics component...
Clone Alpha Robots

Robotics Startup Clone Unleashes Full Humanoid Robot ‘Clone Alpha’

0
Instead of relying on conventional robotic components, Clone Robotics has crafted synthetic versions of human organ systems. Three years after showcasing a remarkable water-powered robotic...

VSMC Starts Construction Of $7.8B Fab In Singapore

0
Set to produce 55,000 wafers monthly by 2029, VIS and NXP's joint venture VSMC’s $7.8 billion semiconductor facility in Singapore breaks ground. VisionPower Semiconductor...
Representation Image

Dr. S Jaishankar Announces India-Japan Semiconductor Partnerships

0
The minister underscored the strategic importance of the emerging semiconductor collaboration among India, Japan, and Taiwan. At the 2nd India-Japan Forum in July 2023, External...

Learn From Leaders

“SEMI Is Actively Working With Indian Universities, Institutions To Create India’s Semiconductor Academy” –...

0
India’s semiconductor industry is expected to face a significant talent shortfall, with a projected shortage of 250,000 to 300,000 professionals by 2027. In an...
Alex P. James From Digital University Kerala

“We Have Removed Traditional Classroom-Based Teaching And Transitioned To Experiential Learning” – Alex P....

0
For India to become a design powerhouse, it must focus on developing Indian-owned companies that can sell their IPs and products globally, not just...
Prassann Daphal, CEO, Evergreen Recyclekaro India

“Our Patented Method Now Extracts Lithium Carbonate At Over 90% Efficiency And 99% Purity...

0
In a conversation with EFY’s Nitisha Dubey, Prassann Daphal of Evergreen Recyclekaro India Private Limited highlights how plasma furnace technology transforms complex materials into...

Build Future-Ready Semiconductor Titans For India’s High-Tech Ascent To Global Semiconductor Leadership

0
Steve Sanghi of Microchip Technology speaks with Dr Satya Gupta from VLSI Society of India, sharing his insights into the future of chip technology...
Andy C Mackie, Principal Engineer - Advanced Materials, Indium Corporation

“Our Multi-Alloy System Enables Solder Joints To Form At Lower Processing Temperatures Without Sacrificing...

0
Liquid metal-based thermal solutions offer efficient cooling but face challenges like spillage and reliable thermal resistance in ultra-thin layers. Akanksha Sondhi Gaur and Nijhum...

Startups

US Startup Eagle Electronics Raises $14M, Eyes Manufacturing Expansion

0
Securing $14 million in state funding, Ohio electronics manufacturing startup Eagle Electronics eyes on boosting its Solon facility, incorporating advanced tech and partnerships to...
Alex P. James From Digital University Kerala

“We Have Removed Traditional Classroom-Based Teaching And Transitioned To Experiential Learning” – Alex P....

0
For India to become a design powerhouse, it must focus on developing Indian-owned companies that can sell their IPs and products globally, not just...

InsideFPV Drone Technology For Agriculture, Defence, And Accessible Consumer Solutions

0
InsideFPV Private Limited, a deep-tech drone company, was founded in July 2020 amid the Galwan Valley conflict between India and China. Founded by Arth Chowdhary,...
XP300

Precision PCB Assembly With Xaltan Systems’ Made-In-India Tech

0
As of 2024, this startup is recognised for its innovative desktop pick-and-place machine, transforming electronic prototyping and small-scale manufacturing. Efficiency, accuracy, and adaptability are the...

Canebot: A Robotic Vending Machine Serving Fresh Sugarcane Juice

0
Pune’s Canectar Foods Private Limited has introduced Canebot, a robotic vending machine designed to dispense fresh sugarcane juice. Founded in 2018 by Milind Datar and...