Chipmakers, you can have these billions – but Uncle Sam wants a cut of your profits
Intel, TSMC, Samsung, and other semiconductor foundries stand to receive billions in American taxpayer funding under the CHIPS and Science Act to expand fab capacity on US soil, according to documents released by the government's Commerce Department.[PDF] for obtaining the subsidies, laid out Tuesday, don't put a cap on how much funding any one company can request, the Dept of Commerce expects disbursements to range from 5 to 15 percent of chipmakers' capital expenditures.
And the actual disbursements could end up being higher. Applicants can request subsidies and loan guarantees, although the Commerce Department doesn't expect this to exceed 35 percent of the project's capital expenditures. But for Intel, which has already committed to spending more than $50 billion in US foundry projects, it could potentially amount to $17.5 billion in subsidies and loans.
However, it's not clear exactly how this would work. The provision is clearly intended to recoup taxpayer dollars from successful investments. However, it could encourage chipmakers to skew their financial projections to be overly optimistic, so as to reduce the likelihood they'll have to pay Uncle Sam back.
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