© Reuters. In this illustrative photo taken on February 17, 2023, semiconductor chips are seen on a printed circuit board. REUTERS/Florence Lo/Illustration/File photo
(Reuters) -The Biden administration is expected to provide billions of dollars in subsidies to major semiconductor companies, including Intel (NASDAQ and Taiwan Semiconductor Manufacturing Co, in the coming weeks to help build new factories in the United States , the Wall Street Journal reported on Saturday.
The upcoming announcements are aimed at boosting manufacturing of advanced semiconductors that power smartphones, artificial intelligence and weapons systems, the WSJ reported, citing industry executives familiar with the negotiations.
Executives expect some announcements to come before US President Joe Biden's State of the Union address on March 7, the WSJ report added.
Among the possible beneficiaries of the subsidies, Intel has projects underway in Arizona, Ohio, New Mexico and Oregon that will cost more than $43.5 billion, according to the newspaper.
Another potential recipient, Taiwan Semiconductor Manufacturing Co (TSMC), has two plants under construction near Phoenix for a total investment of $40 billion. South Korea's Samsung Electronics (KS:), also a contender, has a $17.3 billion project in Texas.
Micron technology (NASDAQ , Texas Instruments (NASDAQ ) and GlobalFoundries (NASDAQ are among other top contenders, WSJ said, citing industry executives.
The US Commerce Department, Intel and TSMC did not immediately respond to Reuters' request for comment.
In December last year, U.S. Commerce Secretary Gina Raimondo said she would provide about a dozen grants for semiconductor chips over the next year, including multibillion-dollar announcements that could dramatically reshape U.S. chip production.
The first award was announced in December, of more than $35 million to a BAE Systems (LON:) facility in Hampshire to produce chips for fighter jets, part of a $39 billion “Chips for America” passed by the US Congress in 2022.
