You’ll have to shell out $4 billion entirely out of your own pocket.
The most generous subsidies under the Chip Act in the United States will go to chip makers, as a total of $39 billion will be allocated to support their projects to build factories in the country over the next five years. Research work in the commercial sector will be satisfied with a subsidy amount of no more than $11 billion, and a separate $2.7 billion will be allocated to support defense-oriented developments. As noted by BloombergApplied Materials recently had its request for subsidies from the US government rejected to build a research center in California.
Image source: Applied Materials
Applied Materials is one of the largest manufacturers of equipment for manufacturing semiconductor chips. Last May, it announced its intention to build a $4 billion research center in California, and even then noted that the scale of the project would heavily depend on the amount of financial assistance from the U.S. government. Now the company will have to rely either on its own resources or attract resources from one of the interested partners. Considering that about 670 companies are applying for subsidies and preferential loans from the U.S. government, the likelihood of refusal from officials is quite high. In general, the bulk of funds to support research activities will be distributed in the United States by the fall of this year.
