The US Chip Act 2.0 targets 10% investment in supply chain subsidies, but manufacturers lack interest
With the determination of the US government to return to the forefront of semiconductor manufacturing, after announcing the Chip Act to subsidize companies investing in semiconductor manufacturing facilities in the US and attracting TSMC to invest a total of $65 billion in building three wafer fabs in Arizona and introducing advanced process technology, the US government is now discussing the content of the Chip Act 2.0, which will target supply chain manufacturers such as TSMC to establish factories in the US and improve the US semiconductor ecosystem.
The supply chain points out that after the US government attracted TSMC to set up factories in the United States with subsidies under the Chip Act, officials are currently considering how to improve the overall ecosystem, with supply chain manufacturers being an indispensable and important link. Therefore, it is hoped that by planning funding subsidies for the Chip Act 2.0, its supply chain manufacturers will also be required to set up factories in the United States for production. Regarding this, the supply chain manufacturer has confirmed that they have received relevant inquiry calls.
It is understood that the Chip Act 2.0 in the United States aims to subsidize the threshold for supply chain manufacturers, which is that the amount invested by manufacturers must not be less than NT $600 million, and then the US government will subsidize one tenth of their investment amount. It does indeed establish production lines in the local area, which do not include facilities such as offices and warehouses, in order to directly supply relevant materials and equipment locally.
The supply chain still maintains a wait-and-see attitude towards this. The reason is that currently, for TSMC, the production capacity of setting up factories in the United States is still small, and the demand for establishing industries locally is not high. Moreover, the investment amount is not small, but the subsidy amount is only one tenth, which means that most manufacturers can only wait for changes and observe market changes before deciding whether to further invest. The supply chain further points out that in addition to investment amount, many manufacturers in the United States also face various challenges such as regulations, environment, and labor, and their scale is not sufficient to cope. Therefore, there is currently no such consideration.
It is understood that the Chip Act 2.0 in the United States aims to subsidize the threshold for supply chain manufacturers, which is that the amount invested by manufacturers must not be less than NT $600 million, and then the US government will subsidize one tenth of their investment amount. It does indeed establish production lines in the local area, which do not include facilities such as offices and warehouses, in order to directly supply relevant materials and equipment locally.
The supply chain still maintains a wait-and-see attitude towards this. The reason is that currently, for TSMC, the production capacity of setting up factories in the United States is still small, and the demand for establishing industries locally is not high. Moreover, the investment amount is not small, but the subsidy amount is only one tenth, which means that most manufacturers can only wait for changes and observe market changes before deciding whether to further invest. The supply chain further points out that in addition to investment amount, many manufacturers in the United States also face various challenges such as regulations, environment, and labor, and their scale is not sufficient to cope. Therefore, there is currently no such consideration.