GlobalWafers, a Taiwan- based semiconductor manufacturing firm that is positioned to be the third biggest manufacturer of chips across the world has declared its proposal to set up a manufacturing industry worth $5 billion in the United States. It further said that it would set up the factory only if the ministry of the U.S. agrees to assist in paying for the factory.

On June 4 when the firm declared its proposal the Secretary of Commerce of the United States said that the chief executive of the firm told her that the financing that the firm would be doing in the U.S. is dependent on Congress approving the CHIPS bill.

The council has already approved the bill that issued an amount of $52 billion in financing for provincial investors to fund the local semiconductor manufacturing market earlier in January last year. However, it has not yet officially set aside any allocation to fund the CHIPS Act.

The Secretary in an interview said that the Council has to come up with a budget before August recess. According to him if the council fails to do so the Taiwan-based semiconductor manufacturer firm would withdraw its offer.

This bill is designed to scale up the United States’ sagging semiconductor manufacturer market as a fence against China’s increased advancement of its microprocessor ability to perform and move worldwide manufacturing away from China’s borders. Most of the chip makers in the world are centralized in Taiwan.

Theoretically, the CHIPS bill is deemed to back local firms and not firms from other countries who are funding in the United States. However, in 2021 the chip maker market association of America, SEMI requested the Council to expand the act for every firm funding in the United States.

Apart from GlobalWafers a few other semiconductor manufacturing firms have also offered to invest in the United States but have put up the same condition.

Two years ago the biggest contract semiconductor maker around the globe, TSMC declared its proposal of setting up a factory in Phoenix worth $12 billion to design the firm’s most excellent semiconductors. However, the chief executive of the firm had conditioned that the deal would move forward only after the ministry of the United States could make amends for the firm’s expense between the U.S. and Taiwan.

Meanwhile, the local manufacturers of the United States are demanding the ministry assist in financing their developments in the U.S. Just a week ago, the America-based semiconductors manufacturing firm Intel suspended the building of its new plant in Ohio worth $20 billion.

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