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US Government May Renege On $76 Billion Chip Investment Promise

As November elections get closer and the recession worsened, the likelihood of Congress approving the A$76 billion CHIPS acts seems less certain.

The Creating Helpful Incentives to Produce Semiconductors for America Act was passed as part of a national defence bill 18 months ago, but approval for the funding falls under two separate bills – the Senate’s USICA and the House’s Competes Act.

With an election looming, it isn’t likely to Biden will be handed an easy win on this matter, especially seeing it will curry favour with voters across party lines.

Intel was forced to delay breaking ground for an Ohio chip factory last week, amidst fears they would be left high and dry if promised funding didn’t eventuate.

“I am just baffled, frustrated, anxious, to see this come across the line,” Intel chief executive Pat Gelsinger (above) told CNBC.

“In absence of certainty of getting that across the line, it just didn’t seem prudent for us to be barrelling as aggressively ahead, and to send a clear message to Congress: We. Need. This. Done.”

TSMC and Samsung are both planning US chip factories that are reliant on the CHIPS act passing.

Taiwan’s GlobalWafers will build a A$7.3 billion plant in Texas, as long as the US provide funding.

“If the Chips Act is not passed, we have to pivot to South Korea,” President Mark England said.


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