Taiwan-based chipmaker GlobalWafers revealed its funding under the US Chips and Science Act is being reviewed by the new administration but highlighted it has not yet been notified of any changes, Reuters reported.
Certain conditions in the act aren’t aligned with President Donald Trump’s policies and are under review, the Chips Act programme officer told a GlobalWafers representative, the news agency wrote.
Under the contract approved by former US President Joe Biden, the company is set to receive $406 million in government funding for projects in Texas and Missouri. The funds will only be awarded to the company after it meets specific milestones this year.
The Trump administration reportedly raised flags about conditions requiring companies receiving government funds to use unionised labour for construction and provide childcare for workers, Reuters stated.
Other global chipmakers including Intel, Taiwan Semiconductor Manufacturing Co, Samsung and SK Hynix did not comment on the report, according to the The Korea Herald.
The newspaper noted any modifications in the funding stipulated in contracts for South Korea’s chipmakers would “deal a heavy blow to their advanced semiconductor production facilities currently under construction in the US”.
Samsung plans to invest more than $40 billion to expand its semiconductor manufacturing capabilities in the state of Texas, with government support of $4.6 billion, while SK Hynix scored $950 million in subsidies and loans for an AI chip facility. That add to its planned investment of $3.8 billion in Indiana.
Source: Mobile World Live
