Applicants for US subsidies will not be able to develop

Applicants for US subsidies will not be able to develop chip production in China with technologies thinner than 28 nm

An important condition for chipmakers to receive subsidies for business development in the United States will be a ten-year ban on certain investments in the economy of China and other unfriendly countries. The technological milestone will happen according to 28 nm lithographic standards – applicants for American subsidies in China will not be able to develop more modern technologies for ten years.

    Image source: TSMC

Image source: TSMC

The agency provided the relevant commentary on the US Congress’ recent US Congress-endowed $52 billion subsidy package for the development of the country’s semiconductor industry Bloomberg. Foreign companies can also apply for state support, but in any case have to forego plans to expand chip production in unfriendly countries with technologies “thinner” than 28 nm. The type of product made doesn’t matter, as the ban applies to both memory chips and logic chips.

The exceptions include the situation where the manufacturer expands the production of 28nm chips or more mature chips in China, mainly for the needs of the domestic market or for some of the unfriendly countries. If the US authorities determine that one of the subsidy recipients has violated these rules, they must return the funds in full to the state budget.

The main candidates for subsidies in the US remain Intel, TSMC and Samsung Electronics. The latter has a large memory chip manufacturing facility in China, but uses more sophisticated lithographic technologies. Intel is now shifting its memory manufacturing facility in Dalian, China to SK hynix, and only TSMC has a facility in Nanjing that produces both 28nm chips and more advanced 16nm chips. It turns out that TSMC will suffer the most from the restrictions proposed by the US authorities.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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