Companies that produce the most advanced semiconductors have requested more than $70 billion in federal subsidies, roughly twice the amount of funding that is available, Commerce Secretary Gina Raimondo said on Monday.
In an effort to revitalize domestic manufacturing of semiconductors, the federal government is distributing $39 billion in subsidies as an incentive for companies to produce more of the tiny chips that power everything from smartphones to cars and fighter jets.
The funding is meant to strengthen the U.S. supply chain and reduce the country’s reliance on foreign sources of chips.
In a speech on Monday at the Center for Strategic and International Studies, Ms. Raimondo said her department had received more than 600 statements of interest.
Federal officials have had to be “tough with companies,” Ms. Raimondo said, adding that she has pushed company executives to “do more for less.” She added that the level of interest also meant that officials would “have to say no to excellent companies.”
Persons:
Gina Raimondo, Ms, Raimondo, ”
Organizations:
Center for Strategic, International Studies
Locations:
United States