As the conflict between the United States and China over the high-tech sector intensifies, the U.S. Department of Commerce has started accepting applications for huge subsidies to boost the construction of semiconductor factories in the country on the 28th.
Subsidized companies are required not to make any new related investments in China for the next 10 years.
In August last year, the Biden administration in the United States enacted a law to support the production and development of semiconductors in the country by investing more than 52 billion dollars, or more than 7 trillion yen in Japanese yen.
With the aim of competing with China, which is promoting the technological development of semiconductors using a huge state-led budget, the U.S. Department of Commerce filed an application for 39 billion dollars, or about 5.3 trillion yen in Japanese yen, on the 28th. We have started accepting applications.
The subsidy is aimed at companies that are involved in the construction of cutting-edge semiconductor facilities in the United States, and the condition is that the companies that receive the subsidy will not make new related investments in China for the next 10 years.
The Biden administration in the United States is increasing pressure on China, which continues to fight for hegemony over high-tech fields, such as strengthening export controls for China on semiconductor-related products that can be diverted to weapons of mass destruction and the latest military systems.