US set to launch $39-billion subsidy program for semiconductor makers

The US government says it will start accepting applications from companies that want to receive large subsidies to construct semiconductor factories in the country.

On Tuesday, the Commerce Department made an announcement about a plan for a 39-billion-dollar subsidy program for semiconductor manufacturers that invest in the US. The program is part of the CHIPS and Science Act.

The Act, which was signed into law in August of last year, is designed to provide more than 52 billion dollars to boost American semiconductor research, development, manufacturing and workforce development.

The aim of the Act is to bolster US leadership in the research and manufacture of semiconductor-related products.

The department said companies that win the funds will be required to agree to restrict expansions of semiconductor manufacturing facilities in China for 10 years.

US exports of such products to China are limited. China is a main competitor of the US in the development of semiconductor-related products.