TECH - China's Semiconductor Spending Tops US With $142B Commitment: Global Chip Race Heats Up | Benzinga
Gaining control over the global supply of chips is becoming a central priority for Western governments trying to compete with China in the race to dominate the industry.
Pandemic-related disruptions showed how a lack of semiconductors can negatively impact a vast number of industries. Now more than ever, securing a steady flow of chips is being placed atop geopolitical strategies worldwide.
This is part of the reasoning behind a long list of sizable investments that governments are pouring on their domestic building capabilities. Subsidies are expected to reach hundreds of billions of dollars in the coming decade.
Biden Pushes Hard: In the U.S., incentives for the semiconductor industry already amount to $32.8 billion as part of President Joe Biden's far-reaching CHIPS Act in an effort to boost jobs, gain independence from Asian production and improve the administration's image ahead of the presidential election.
On Monday, Treasury Secretary Janet Yellen said it's "critically important for the United States to have a role in strategic industries," including semiconductors.
Micron Technology Inc (NASDAQ:MU) and Intel Corp (NASDAQ:INTC) are among U.S. companies poised to benefit from measures coming from the CHIPS Act.
Another $39 billion in subsidies have been promised by the government, along with $75 billion in loans and ...