Semiconductor manufacturing company TSMC and Samsung Electronics recently urged the U.S. to allow foreign companies to participate in the $52 billion (331.18 billion yuan) semiconductor investment and subsidy plan.
Why it matters
On February 4, the “America Competes Act of 2022” was enacted by the United States House of Representatives, and it includes $52 billion in semiconductor investments and subsidies to boost the development of chip facilities in the United States and make the market more competitive. Both TSMC and Samsung Electronics, the world’s two largest contract chipmakers, intend to invest billions of dollars to build new, cutting-edge factories in the U.S.
Samsung claimed the U.S. government should ensure that all eligible companies, regardless of their country of origin, can compete on a level playing field for the subsidy plan. TSMC also called on the U.S. to reform its immigration policy to attract global talent to help drive innovation.
Currently, TSMC is investing $12 billion (76.43 billion yuan) in Arizona to build a factory with the goal of producing 5nm chips by 2024. Samsung Electronics is also building a $17 billion (108.27 billion yuan) factory in Texas, aiming to start mass production in two years.
Intel has suggested that taxpayer money in the U.S. should go to local enterprises, although Intel CEO Pat Gelsinger has not repeated that argument in recent interviews. Intel’s technology lags behind that of TSMC and Samsung by at least a generation.