The US and Europe invested $81 billion to start the semiconductor battle, while South Korea only supports less than $1 billion this year
So far, the United States and the European Union have invested about $81 billion in subsidies for the development of next-generation semiconductors, intensifying competition in the world's leading semiconductor industry, including competition against Chinese Mainland.
Countries/regions around the world have allocated a total of $380 billion to promote the production of cutting-edge semiconductors by companies such as Intel and TSMC. Among them, the United States and the European Union have pledged to provide approximately $81 billion.
The United States plans to provide a total of $52.7 billion in funding under the Chip and Science Act over the next five years, including $39 billion in production subsidies and $13.2 billion in research and development support. So far, the United States has announced a subsidy of $8.5 billion to Intel, $6.6 billion to TSMC, $6.4 billion to Samsung Electronics, and $6.1 billion to Micron. In addition, the US government will provide $75 billion in low interest loans and up to 25% tax incentives.
The EU plans to invest approximately $46.3 billion to strengthen the region's semiconductor manufacturing capabilities. According to this investment, the EU estimates that public and private sector investments will exceed $108 billion. The EU plans to provide $11 billion in subsidies for Intel's factory construction in Germany and half of the investment for TSMC's factory construction in Germany. However, the European Commission has not yet given final approval.
In response, the United States is strengthening its joint efforts with its traditional ally, the European Union, including the introduction of advanced technology investment regulations for Chinese Mainland. The United States also plans to consolidate its front against the Chinese Mainland by strengthening semiconductor cooperation with South Korea, Taiwan, China, Japan and other allies.
The Japanese government has provided approximately $25.3 billion in funding support to support the implementation of the US Chip Act and cultivate its semiconductor industry. Among them, 16.7 billion US dollars are specifically used to subsidize the construction of two TSMC factories and Rapidus chip factories in Japan, to enhance the domestic semiconductor industry. Japan's goal is to double its current chip production and sales to $96.3 billion by 2030.
India also announced a $10 billion subsidy plan in February this year to build its first domestic semiconductor production facility. The Saudi Public Investment Fund has also stated that it will make significant investments in the semiconductor sector this year.
Although other major countries/regions are openly cultivating their semiconductor industries, South Korea has only strengthened its semiconductor industry through an indirect support program worth $7.3 billion, as the South Korean government views semiconductors as part of a broader technology industry. Critics point out that South Korea still needs to strengthen its semiconductor supply chain through direct support. This year, the government's direct support for the semiconductor industry is only 1.3 trillion Korean won (approximately 956 million US dollars).
The United States plans to provide a total of $52.7 billion in funding under the Chip and Science Act over the next five years, including $39 billion in production subsidies and $13.2 billion in research and development support. So far, the United States has announced a subsidy of $8.5 billion to Intel, $6.6 billion to TSMC, $6.4 billion to Samsung Electronics, and $6.1 billion to Micron. In addition, the US government will provide $75 billion in low interest loans and up to 25% tax incentives.
The EU plans to invest approximately $46.3 billion to strengthen the region's semiconductor manufacturing capabilities. According to this investment, the EU estimates that public and private sector investments will exceed $108 billion. The EU plans to provide $11 billion in subsidies for Intel's factory construction in Germany and half of the investment for TSMC's factory construction in Germany. However, the European Commission has not yet given final approval.
In response, the United States is strengthening its joint efforts with its traditional ally, the European Union, including the introduction of advanced technology investment regulations for Chinese Mainland. The United States also plans to consolidate its front against the Chinese Mainland by strengthening semiconductor cooperation with South Korea, Taiwan, China, Japan and other allies.
The Japanese government has provided approximately $25.3 billion in funding support to support the implementation of the US Chip Act and cultivate its semiconductor industry. Among them, 16.7 billion US dollars are specifically used to subsidize the construction of two TSMC factories and Rapidus chip factories in Japan, to enhance the domestic semiconductor industry. Japan's goal is to double its current chip production and sales to $96.3 billion by 2030.
India also announced a $10 billion subsidy plan in February this year to build its first domestic semiconductor production facility. The Saudi Public Investment Fund has also stated that it will make significant investments in the semiconductor sector this year.
Although other major countries/regions are openly cultivating their semiconductor industries, South Korea has only strengthened its semiconductor industry through an indirect support program worth $7.3 billion, as the South Korean government views semiconductors as part of a broader technology industry. Critics point out that South Korea still needs to strengthen its semiconductor supply chain through direct support. This year, the government's direct support for the semiconductor industry is only 1.3 trillion Korean won (approximately 956 million US dollars).