WASHINGTON :Taiwan Semiconductor Manufacturing Co, GlobalFoundries and at least one other chipmaker are poised to receive their final Chips and Science Act awards from the Biden administration, two people briefed on the matter said.
The U.S. Commerce Department recently notified Congress at least three companies are close to receiving a final award, one of the people briefed on the matter and another source familiar with the negotiations said. Under the Chips Act, the Commerce Secretary must notify appropriate committees at least 15 days before making any deal over $10 million.
The notification is a sign of progress amid concern about the pace of the award rollout.
TSMC, GlobalFoundries and the unidentified third company are among 21 awarded about $37 billion in preliminary agreements through the bipartisan 2022 Chips and Science Act, aimed at luring chipmakers out of Asia to expand production in the U.S. So far, only one has been finalized and announced. It went to Polar Semiconductor for $123 million to expand and modernize a chip fab in Bloomington, Minnesota.
Reuters could not determine the timing of the award announcements or the exact amount, though it is expected to be close to the initial sum.
In April TSMC’s U.S. unit was awarded a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona, in a preliminary agreement with the Commerce Department.
In February, GlobalFoundries was awarded $1.5 billion to build a new semiconductor production facility in Malta, New York, and expand existing operations there and in Burlington, Vermont.
The fact that Congress has been notified of at least three deals shows the Biden administration is making headway on final terms, amid growing concern among award recipients that Republican Donald Trump could scuttle the grants when he becomes president. Reuters could not determine if the other company closed its deal.
TSMC and GlobalFoundries declined to comment.
A Commerce