Companies that get chip incentives in the US will have to share excess profits

In the US, President Joe Biden's administration is requiring chip companies that receive incentives from the program, which also includes $52.7 billion in support for semiconductor production, to share their excess profits. The US Department of Commerce announced that applications for manufacturing incentives will begin at the end of June as part of the CHIPS law, which was designed to increase chip production and scientific research in the country. The ministry reported that companies that receive more than $150 million in direct financing must share a portion of their profits above the agreed threshold with the US government and submit a plan on how they will provide affordable and accessible child care for their employees. CHIPS law The CHIPS law, which was signed into law by US President Biden on August 9, 2022, aims to increase domestic semiconductor production and alleviate the chip shortage that has disrupted production in many sectors from automobiles to electronics. The law includes $52.7 billion in support for semiconductor production as well as a 25% tax cut for 4 years to encourage the establishment of semiconductor factories.