More than 460 companies have indicated enthusiasm for receiving government financing for semiconductor subsidies, according to the U.S. Commerce Department, which released the information in an effort to make the country more competitive with China’s scientific and technological endeavours.

On Wednesday, the White House will commemorate a year after President Joe Biden signed the historic “Chips for America” bill, which provided $52.7 billion in subsidies for American semiconductor manufacture, research, and workforce development.

In a statement, Biden noted that over the past year, businesses had committed $166 billion to the production of semiconductors and other electronics. He added that the law will “make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains.”

The $39 billion subsidy programme for American semiconductor production as well as tools and supplies for creating chips was launched by the Commerce Department in June, but awards have not yet been given out.

“We’re finally making the investments that are long overdue to secure our economic and national security,” Commerce Secretary Gina Raimondo told reporters. “We need to move quickly but it’s more important we get it right.”

The Commerce Department is working rapidly, a senior official said to reporters, adding that “we are in active dialogue with applicants and we expect to be announcing major progress in the months ahead.”

A 25% investment tax credit for chip plant construction is also included in the statute, with a potential value of $24 billion.

Governments all around the world are working at a historic pace to revive semiconductor production and assure a strong, reliable supply chain, according to Intel CEO Pat Gelsinger on Tuesday. Progress in the United States is undeniable.

Over 140 personnel were hired by the Commerce Department last year, and regulations for receiving and evaluating applications were also written.

The administration is also requiring businesses applying for big grants to give access to cost-effective, high-quality childcare and share any excess earnings in order to make sure China won’t profit from U.S. support.

The department has previously said that total award amounts typically do not exceed 35% of project capital costs, and direct financing awards are intended to fall between 5% and 15% of capital expenditures.

“We’re going to be doing our own diligence. We’re not writing blank checks to any company that asks,” Raimondo said in February.

After the Commerce Department selects deserving projects, authorities must decide how much government funding to provide and how to structure awards with a combination of grants, government loans, and loan guarantees.

The measure also allots $11 billion for research and development in advanced semiconductor production. The National Semiconductor Technology Centre will serve as the focal point.

The National Science Foundation, the Department of Defence, the Department of Energy, and the Department of Commerce are in talks to establish the centre, according to the Department of Commerce, “to better integrate research and development and workforce efforts across the semiconductor ecosystem.” No specific place has been noted.

(Adapted from Investing.com)