$39 Billion Incentive for Technology Companies from the USA

The technology war between China and the US has intensified. In the past months, the US has banned the shipment of NVIDIA and AMD’s powerful graphics processors to China and announced a large fund to move production to its territory.

The fund that the Joe Biden administration is preparing has now reached the final stage. Applications of technology companies to the fund were activated as of February 28, 2023. Let’s take a look at the details that will escalate the war and shape the coming years.

Applications to CHIPS are open:

The US Department of Commerce announced that applications for the CHIPS program, which will restrict the activity of US chip manufacturers in the territory of China, were opened as of February 28, 2023. In the first round of filing, protecting taxpayers’ money and The United States will be able to promote the development of national security goals. will prioritize those who want to establish domestic chip production facilities.

Certain conditions will be sought for companies seeking more than $150 million in funding under the program. If these companies provide childcare to construction and factory workers, restrict share buybacks and are ‘more profitable than anticipated’ share some of their profits with the government will need. In addition, companies will employ unionized workers.

The government plans to open additional funding rounds in the spring and fall of the year to increase investment in chipmaking materials and research facilities.

What was the US fund? “They will not be allowed to use this money to invest in China”

The U.S. Department of Commerce and the government approved the Chip and Science Act, known as “CHIPS” for short, on July 28, 2022. While the law has a total fund of 280 billion dollars, this fund’s 39 billion dollars It was to be reserved for US chip manufacturers.

US Secretary of Commerce Gina Raimondo also pointed out that technology companies that will benefit from CHIPS will be under surveillance. Raimando stated that they would not allow the money to be used to invest in China, and said that the latest technology development studies could not be done in China.

It will be applied to companies included in the fund.advanced technologyThe ban on establishing facilities will be implemented for 10 years. The companies included in the fund only have their existing factories in China, be able to expand to serve the Chinese market.