Intel, Others Will Have To Limit Share Buybacks, Chinese Chip Plans To Receive U.S. Funding
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After the U.S. CHIPS Act was made official last year, the Commerce Department has released its first funding round details for the investments that the government will make in the semiconductor industry to develop "large scale clusters" of leading edge chip fabrication and research facilities in the U.S. Today's announcement covers the first funding round of the program, which deals with requiring companies to submit their applications for up to 15% of support related to setting up new facilities in the U.S. to make leading edge chips or memory products.
They also issue rules that the firms applying for the grants will be required to follow, including a limitation for setting up new manufacturing facilities in high risk countries and submitting plans for future stock buyback to the Commerce Department as part of the application process.
The U.S. CHIPS Act was passed in Congress last year, and today the Commerce Department opened up its first round of applications for the funding. This round asks interested parties to submit letters of interest to the government, through which their applications can be evaluated for the support. The applications will compete for up to $38 billion in direct funding and a whopping $75 billion for government loan guarantees and other backing.
As part of the application process, companies such as Intel, which have been quite vocal about the incentives, will also be required to make their own contributions and show how much private funding they have secured for the planned projects for which they are applying for the CHIPS funding. They will also be required
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