Source: Financial Associated Press
Financial Union, August 28 (Editor Xia Junxiong) On Wednesday (August 27) local time, U.S. chip manufacturing company Gexin said that it is making good progress in obtaining subsidies under the Chip Act and that no form of equity is involved in the framework.
John Hollister, the chief financial officer of GNC, said on Wednesday at the Bank of Germany’s technology conference that the company is getting government funding under the Chip Act based on the completion of the project’s phased goals.
In August 2022, then-President Joe Biden signed the Chip and Science Act of 2022, which would provide $52.70 billion to subsidize the U.S. chip industry.
Following the opening of his second term as U.S. President, Trump was very dissatisfied with Biden’s political legacy, claiming the Chip Act should be abolished.
However, Trump subsequently took a relatively moderate approach, requiring chip companies to meet some of the conditions set by their government when obtaining subsidies.
In the case of Intel, the company offered a 10% stake to the U.S. government in exchange for subsidies under the Chips Act, which made the U.S. government one of its largest shareholders.
U.S. officials said similar approaches could be taken with other chip companies, but ruled out TSMC and Micron Technology because both companies promised to increase significant investment in the United States.
It is that GNC's "Chip Act" subsidy program also does not involve government investment, and the company has pledged to expand the production capacity of its circular plants everywhere.
Earlier this year, Gexin increased its investment plan to US$16 billion, and allocated an additional US$1 billion for capital expenditures and US$3 billion for research and development of multiple emerging chip technologies.
According to Hollister, the investment will cover spending over the next decade.