The US-Biden administration circulated its strategy for sponsoring US output of semiconductors, with the initial phase of funding being turned out the next spring, Commerce Secretary Gina Raimondo informs. It is likely that smaller, humbler projects connecting expansion of prevailing facilities will be given priority to receive funds. This would be followed by more multifarious projects, so-called leading-edge chips, which the US doesn’t yield currently but rather consumes over 25% of global supply, Raimondo to reporters in Washington.

The plan known as ‘Chips for America’ assigns $28 billion for domestic production of leading-edge logic and memory chips. Moreover, about $10 billion for new capacity to figure current-generation chips and semiconductors and $11 billion for a fresh National Semiconductor Technology Center, manufacturing institutes, and other developmental programs, the Department of Commerce said accompanying the strategy’s release, Raimondo. “So if a company by now has subsidy for a $10 billion project, we encourage them to think bigger, convincing us to go from $10 billion to $50 billion using taxpayer financing.”

US President Joe Biden signed the $52 billion Chips and Science Act legislation into law on August 9. It said that the Department of Commerce would soon release the funding documents providing specific application guidance needed for the program by early February. “Awards and loans would be made on a rolling basis as the applications can be responsibly processed, evaluated and negotiated soon,” it said. Raimondo said there are clear guide rails on the money as companies can’t use the funds for stock buybacks. The department will safeguard those receiving chip funds as it compromises nationwide security by investing in China. Raimondo said that the department would have the capability to claw back money if a beneficiary company miscarries to start or complete a venture on time.