US to Provide Additional 33 Trillion Won Support for Semiconductor Industry

Worsening Shortage and China Containment... Senate to Add Details to Last Year's 113 Trillion Won Support Plan for Vote Next Month

[Asia Economy Reporter Park Byung-hee] The U.S. Congress is expected to provide an additional $30 billion (approximately 33.912 trillion KRW) in support for its domestic semiconductor industry.

According to major foreign media on the 4th (local time), the U.S. Senate is preparing a $30 billion support bill to strengthen the competitiveness of the semiconductor industry. Senate Majority Leader Chuck Schumer of the Democratic Party is leading the bill's preparation.

Last year, Leader Schumer, together with Republican Senator Todd Young, proposed a $100 billion support plan to encourage research in cutting-edge IT sectors such as artificial intelligence (AI), quantum computing, and semiconductors. The package bill, which includes an additional $30 billion for the semiconductor industry, is expected to be put to a vote next month.

Recently, as automakers have faced production disruptions due to semiconductor shortages, the importance of the semiconductor industry in the U.S. has been emphasized. At the end of last month, President Joe Biden signed an executive order to review supply chains for four major items: semiconductors, batteries, rare earth elements, and medical supplies.

At that time, President Biden pointed out that semiconductor shortages were causing disruptions in automobile production and particularly emphasized the need to inspect the semiconductor supply chain.

In response, Leader Schumer has expressed his intention to push forward legislation to provide funding support for the semiconductor industry. Senator Schumer has swiftly begun preparing the bill and has now completed reviewing the specific support amounts.

The bill is reported to include subsidies for companies investing in facilities and equipment for semiconductor manufacturing, inspection, and research and development (R&D), as well as provisions for public-private joint projects.

The strengthening of U.S. support for the semiconductor industry also aims to counter China. China is pursuing a "semiconductor rise" plan to increase its domestic semiconductor production ratio (self-sufficiency rate) to 70% by 2025.