The CHIPS Act pays billions of euros to chip manufacturers

The US government shares an update on the CHIPS Act. In addition to 39 billion euros in direct subsidies, companies get a 25 percent tax break on new chip factories.

The US Commerce Department has announced that companies will receive a 25 percent tax break for building US chip factories.

Notice CHIPS sheds new light on the law. A 50 billion euro bill was recently approved by the US government. The tax break comes with $39 billion in grants, loans and guarantees to companies contributing to America’s chip manufacturing and supply chain.

US CHIPS Act

The ministry says the U.S. still leads the world in chip design and automation, but the country has only 10 percent of global chip capacity. Also, the ministry insists that the US is lagging behind in domestic production.

“The United States is no longer among the world’s most advanced chips producers,” the ministry said in a statement. A new policy document. “Additionally, the U.S. has lost the ability to manufacture key parts of the supply chain, such as lithography, tools, substrates and some chemicals.” According to the ministry, the situation has been worsened by Chinese initiatives in the area of ​​productivity.

Foreign companies are also eligible

CHIPS Act grants are awarded flexibly. Almost every company that contributes to America’s CHIP goals is eligible.

Think of plans to speed up domestic chip production or companies increasing demand for chips by developing new applications. Practitioners of researchers and technicians are also eligible.

Foreign companies can also get the grant. The ministry insists that money should be spent on infrastructure in the US. Generally, the financing is not used abroad.