According to the Wall Street Journal, President Joe Biden’s administration is expected to award billions of dollars in subsidies to top semiconductor companies such as Intel (INTC.O) and Taiwan Semiconductor Manufacturing Co (2330.TW) in the coming weeks to help build new factories in the United States.
The upcoming announcements aim to jumpstart the production of advanced semiconductors that power smartphones, artificial intelligence, and weapons systems, according to industry executives familiar with the negotiations.
According to the report, executives expect some announcements prior to Biden’s State of the Union address on March 7.
Intel is among the likely recipients of the subsidies, with projects underway in Arizona, Ohio, New Mexico, and Oregon that will cost more than $43.5 billion.
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