[News] Entegris Receives Subsidy, Hinting at a Shift in U.S. Chip Funding Strategy?

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In recent years, global semiconductor market has seen cut-throat competition. Amid complicated international environment, countries and regions such as South Korea, the United States, Japan, and Europe have launched chip subsidy measures to strengthen the development of their domestic semiconductor industries.

To revive semiconductor production, the United States officially passed the CHIPS and Science Act in 2022, which includes a fund of approximately USD 52.7 billion for supporting the semiconductor industry and an investment tax credits worth USD 24 billion to companies.

• Subsidy Application System for Semiconductor Manufacturing Fab Closed

Since December 2023, several semiconductor companies have received subsidies from the U.S. government under the CHIPS and Manufacturing Act. Preliminary statistics showed subsidy amounts reached billions of dollars, including Intel (USD 8.5 billion), Micron (USD 6.14 billion), Samsung (USD 6.4 billion), TSMC (USD 6.6 billion), GlobalFoundries (USD 1.5 billion), and Microchip Technology (USD 162 million).

From this it can be seen that early U.S. subsidies in the semiconductor sector mainly focused on semiconductor chip manufacturing. However, due to limited funds and the large number of applications, the CHIPS program office previously announced plans to close funding application system for semiconductor manufacturing plants until “further notice.”

And it’s worth noting that lately, another semiconductor company announced it had received U.S. chip subsidies, indicating the government’s target has shifted to the semiconductor materials sector.

• Entegris Received a Subsidy of USD 75 Million

On June 26, the U.S. Department of Commerce and semiconductor materials company Entegris jointly announced that Entegris would receive a USD 75 million chip subsidy from the U.S. government.

It is reported that Entegris has signed a non-binding preliminary terms memorandum (PMT) with the U.S. Department of Commerce. As per the CHIPS and Science Act, the Department of Commerce will provide Entegris with a direct fund of up to USD 75 million.

This fund will support the development of a state-of-the-art factory in Colorado Springs, supporting the company’s Advanced Materials Handling (AMH) and Microcontamination Control (MC) divisions. The aim is to produce products critical to the future of U.S. semiconductor manufacturing.

The factory is planned to put into initial commercial operation in 2025 and will be constructed in multiple phases: The first phase will support the production of front-opening unified pod (FOUP), currently entirely produced abroad, and liquid filtration membranes. The second phase will support the production of advanced liquid filters, purifiers, and fluid handling solutions.

Front-opening unified pod is an important product for transporting and protecting wafers in the semiconductor manufacturing process. The U.S. Department of Commerce press release stated that Entegris mainly supplies products for Intel, TSMC, Micron, and GlobalFoundries, holding a significant position in the global semiconductor supply chain.

Read more

• [News] A Subsidy Wave Sweeping in the US, Europe and Japan amid the Cut-Throat Chip Competition
• [News] US Allocates USD 39 Billion Subsidy to Semiconductor Industry for Establishing Plants

(Photo credit: Entegris)