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U.S. Prohibits Receivers of CHIPS Subsidies From Building New Fabs in China

July 28, 2022


Now that the US Senate has passed the Chips and Science semiconductor production subsidies bill, it is likely only a matter of days before it will be passed by the House of Representatives and signed into law by the President, which will open doors for chipmakers to get subsidies and other incentives from the federal government. But while all producers of chips who build new fabs are eligible to get them, there are certain conditions they will have to meet.

As it turns out from the text of the Chips and Science act, companies that receive Federal incentive funds are prohibited to expand or build “new manufacturing capacity for certain advanced semiconductors in specific countries that present a national security threat to the United States.”

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