US to award semiconductor funding in next eight weeks: Raimondo

The US Commerce Secretary Gina Raimondo, announced on Monday that her department aims to issue several funding awards within the next two months from the government's $39 billion semiconductor manufacturing programme.

Raimondo revealed in an interview with Reuters that the department is engaged in intricate negotiations with various companies, although she did not disclose their identities. 

She stated, "In the next six to eight weeks, you will see several more announcements. That's what we're striving for."

The semiconductor fund is designed to subsidise chip production and related supply chain investments, with the awarded funds intended to facilitate the construction of factories and ramp up production.

Raimondo stressed upon the complexity of the facilities being proposed by companies like TSMC, Samsung, and Intel in US, describing them as "highly complex, first-of-their-kind facilities." 

She highlighted their new-generation investments in terms of size, scale, and complexity, which have never been seen before in the country.

In December, Raimondo had anticipated making approximately a dozen semiconductor funding awards within the next year, including multi-billion dollar announcements.

She further mentioned her personal involvement in regular discussions with CEOs of chip companies, underlining the department's commitment to the initiative.

While only two small awards have been made from the "Chips for America" semiconductor manufacturing and research subsidy program so far, Raimondo expressed confidence that the government is not lagging in making awards.

The awards may comprise a combination of grants, government loans, and loan guarantees, covering up to about 35 per cent of project capital costs.

Despite cyclical market challenges, Raimondo remains optimistic about the demand for chips, particularly driven by artificial intelligence. 

She remarked, “Artificial intelligence (AI) is going to drive demand for chips in a way that we haven't ever seen.”