Chipmakers receiving US federal funds can’t expand in China for 10 years
Chipmakers must also provide affordable childcare and are barred from stock buybacks.
Enlarge / A worker prepares a silicon wafer machine in a clean room at the Texas Instruments semiconductor fabrication plant in Dallas, Texas. (credit: Bloomberg via Getty Images)
Chipmakers must agree not to expand capacity in China for a decade if they are to receive money from a $39 billion federal fund designed to build a leading-edge US semiconductor industry, according to new commerce department rules.
The department on Tuesday called for applications for funds from the Chips Act passed by Congress last year, as it launched a landmark industrial policy program designed to counter China.
In announcing the move, Commerce Secretary Gina Raimondo stressed that the department would be implementing safeguards to ensure the program was not abused.
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