The US Department of Commerce on Tuesday unveiled a plan to provide $50 billion to the domestic semiconductor industry and countering China, in what is billed as the largest government bailout to the industry in decades, media reported.
About $28 billion will go toward grants and loans to help build facilities for making, assembling and packaging some of the world’s more advanced chip, another $10 billion will be allocated to expanding manufacturing for older generations of technology used in cars and communications technology, while $11 billion will go toward research and development initiatives related to the semiconductor industry, The New York Times reported.
The commerce department intends to start collecting funding applications from companies no later than February next year, the report said.
Earlier in August, US President Joe Biden signed an executive order to implement the $280 billion CHIPS and Science Act of 2022, which includes more than $52 billion in subsidies for US semiconductor manufacturers in an effort to counter China’s growing technological clout.
Reporting from Sputnik News.
