$1.5 billion! Gexin will receive subsidies from the US government

Source: International E-commerce News
    The third company to receive subsidies from the US chip industry has been announced. The Biden administration announced on the 19th that it will provide $1.5 billion in funding to Global Foundries to expand semiconductor production and strengthen the domestic supply chain in the United States.
    This is the third subsidy under the Chip and Science Act in the United States. In 2022, the US Congress passed the bill aimed at revitalizing US semiconductor production. The bill proposes to allocate up to $39 billion in direct funding subsidies, as well as $75 billion in special loans and loan guarantees. According to official statements from the United States, the projects it sponsors will create over 10000 jobs within a decade. 
    Specifically, the first subsidy was announced in December 2023, worth $35 million, and was granted to BAE Systems for the production of fighter chip factories. The second subsidy was released in early January 2024, when the US government announced a $162 million offer to Microelectronics, aimed at helping the company double its production capacity.
    Regarding the third subsidy, according to a preliminary agreement reached between Gexin and the US Department of Commerce, the company will build a new factory in Malta, New York and expand its existing production scale in Burlington, Vermont.
    In addition, in addition to a subsidy of $1.5 billion, the government will also provide $1.6 billion in loans to Gexin, which may ultimately drive an investment of around $12 billion.
    "The chips produced by Gexin in these new factories will be crucial to our national security," US Secretary of Commerce Gina Raimondo said at a press conference. Gexin is the third subsidy recipient of the bill, and the US Department of Commerce plans to announce more subsidy recipients for the government‘s increased semiconductor manufacturing plan in the coming weeks or months. It is reported that TSMC and Samsung Electronics are also expected to receive the funds to build new factories in the United States.
    Gexin is a professional semiconductor foundry that abandons the pursuit of Moore‘s Law and focuses on unique process innovation. Currently, over 80% of Gexin‘s shares belong to the Abu Dhabi government.
    "From an industry perspective, we now need to shift our focus to increasing demand for American made chips and cultivating high-end labor in American semiconductors," said Thomas Caulfield, President and CEO of Gexin, in a statement