US to Exempt Projects Under the CHIPS and Science Act

The US politicians approved a bill to exempt projects under the CHIPS and Science Act from some government environmental permit requirements. This means that chipmakers building facilities in the US got closer to receiving a break.

US government incentives under the act require new facilities to be reviewed under the National Environmental Policy Act, which many in the industry fear could delay the start of construction by years, the news agency wrote. The new bill has reportedly been passed to President Joe Biden for approval. It would give chip projects exemptions if they begin construction by the end of this year, receive only loans rather than direct grants and the incentives account for less than 10% of the total construction cost.

Samsung and Taiwan Semiconductor Manufacturing Co have long complained about various delays in moving ahead with the construction of approved CHIPS and Science Act-funded projects. The act was passed in 2022 and includes a $52 billion subsidy pot and an estimated $24 billion investment tax credit for chip plants.