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Biden administration to seek chip funding applications next year - NYT

Published 09/06/2022, 04:16 AM
Updated 09/06/2022, 04:20 AM
© Reuters. U.S. President Joe Biden signs the CHIPS and Science Act of 2022 alongside Vice President Kamala Harris, House of Representatives Speaker Nancy Pelosi, Commerce Secretary Gina Raimondo and Joshua Aviv, founder and CEO of SparkCharge, on the South Lawn of

(Reuters) - The United States Department of Commerce aims to begin soliciting applications for semiconductor chips funding from companies no later than February, Commerce Secretary Gina Raimondo said in an interview with the New York Times on Tuesday.

President Joe Biden last month signed an executive order on implementation of the $52.7 billion semiconductor chips manufacturing subsidy and research law.

The Department could begin disbursing money by next spring, Raimondo added.

The Commerce Department will review and audit firms that receive the funding, and take back funds from any company that violates the rules, the NYT reported.

Biden signed the bill to boost efforts to make the United States more competitive with China's science and technology efforts.

© Reuters. U.S. President Joe Biden signs the CHIPS and Science Act of 2022 alongside Vice President Kamala Harris, House of Representatives Speaker Nancy Pelosi, Commerce Secretary Gina Raimondo and Joshua Aviv, founder and CEO of SparkCharge, on the South Lawn of the White House in Washington, U.S., August 9, 2022. REUTERS/Evelyn Hockstein

By subsidizing U.S. chip manufacturing and expanding research funding, the law aims to alleviate a persistent shortage that has affected everything from cars and weapons to washing machines and video games.

The U.S. department of commerce did not immediately respond to Reuters request for comment.

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