February 25, 2024
Samsung and DSMC are fighting the $ 52 billion US tax breach

Samsung and DSMC are fighting the $ 52 billion US tax breach

The U.S. government plans a $ 52 billion tax incentive to expand semiconductor production in the country. However, the move creates tension between the world’s top three chipmakers: DSMC, Samsung And Intel.

Taiwan’s TSMC and South Korea’s Samsung, two of the world’s largest chipmakers, are interested in the billion dollar grant from the US government. North American Intel, on the other hand, protects American taxes from being used to invest in foreign companies.

“Spontaneous support and preferred treatment based on the location of a company’s headquarters is not an effective or efficient use of the offer. Moreover, it ignores the reality of public ownership for most large chip companies,” TSMC was quoted as saying in a note with support.

Want to stay in the best tech news of the day? Subscribe to our new YouTube channel, Canaltech News. Here is a summary of the top news in the tech world every day for you!

TSMC also insists that the United States should invest in advanced technologies that increase competitiveness, rather than trying to expand the supply chain. In addition, the brand suggested changes in U.S. immigration policy as a way to attract more foreign talent that could contribute to innovation.

Taiwan’s news is a direct critique of Intel’s position on the use of US taxpayers’ money. It is noteworthy that the North American company’s technology is a generation behind its Asian competitors, which should begin to change with Intel’s planned billionaire investments in new industries.

DSMC Criticizes Intel’s Position and US Government Immigration Policy (Image: Guide / DSMC)

US investment in semiconductors

In 2021, US President Joe Biden met with members of the semiconductor industry to discuss the global chip crisis. To prevent this from happening in the future, and to end China’s dependence on the supply chain, the U.S. government began promoting semiconductor production in the country with tax concessions.

Since then, major chip makers have invested heavily in the country. TSCM began building a $ 12 billion facility in Arizona, while Samsung was building a $ 17 billion factory in Texas.

Meanwhile, Intel announced $ 20 billion investment in a chip manufacturing facility in Ohio. In addition, the US company has begun construction of two new factories in Arizona.

Finally, the final text of the $ 52 billion stimulus plan has yet to go through the analysis of the US House and Senate. According to Bloomberg, the package should be approved by the end of May.

Source: Android Headlines, Bloomberg