Samsung is trying to secure CHIPS Act subsidies before Donald Trump takes charge. Joe Biden introduced CHIPS and Science Act to boost semiconductor business on American soil. However, the President-elect is a big critic of the CHIPS Act.
Bloomberg reports that the Biden administration is rushing to finalize CHIPS Act agreements with Intel and Samsung. Notably, Samsung and Intel are set to receive direct subsidies of $6.4 billion and $8.5 billion, respectively.
During his election campaign, President-elect Trump heavily mocked the CHIPS and Science Act. It is expected that Trump could put tariff on semiconductor manufacturers and nullify subsidies before disbursment.
Concerns have arisen that semiconductor companies, which have invested heavily in the U.S. over the past four years, might not receive subsidies, or that U.S. companies like Intel could be prioritized.
Intel is an American company, which could be unaffected by Trump’s presidency. As the President-elect prefers an “America First” policy, it’s an alarming situation for Samsung Electronics, which bases its headquarters in South Korea.
Since the CHIPS and Science Act is considered a key industrial policy of the Biden administration, this move is seen as an effort to finalize binding contracts and distribute promised subsidies before the administration changes.
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