WASHINGTON, Sep 6 – PRIME. The US Department of Commerce has unveiled a plan to provide the US semiconductor industry with $50 billion in what is expected to be the largest government bailout to the industry in decades, the New York Times reports.
The Commerce Department on Tuesday unveiled its $50 billion plan to boost the domestic semiconductor industry and counter China.
Some $28 billion will be used in grants and loans to help build facilities to manufacture, assemble and package some of the world’s most advanced chips, the newspaper notes. Another ten billion dollars will be used to expand the production of technologies used in automotive and communications technologies. In addition, $11 billion will go towards research and development related to the semiconductor industry.
According to the newspaper, the ministry intends to start collecting funding applications from companies no later than February 2023.
In August, US President Joe Biden signed into law a $52.7 billion bailout for US semiconductor manufacturers to strengthen its position in competition with China.