The US will subsidize chip production on the condition that it does not develop production in China and the Russian Federation

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US authorities will deprive companies that will receive state subsidies for semiconductor production from the opportunity to invest in China and Russia. In this respect informs RIA Novosti agency referring to US Department of Commerce document.

The department submitted a draft additional requirement to accompany the implementation of the Chips for America Act, a $52.7 billion industry support measure that was recently passed.

“The law prohibits significant operations related to the significant expansion of production capacity at advanced and modern facilities in foreign countries for a period of ten years from the date of grant,” the document said.

The US Department of Commerce lists China, Russia, Iran and North Korea as “countries of concern”. Transactions amounting to $100,000 under “significant transactions” and “significant expansion” are interpreted as a 5% increase in production.

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