According to Reuters, VLSI Research CEO Dan Hutcheson (Dan Hutcheson) revealed that the US government's ban on China's Huawei has triggered a large inventory backlog in the entire chip industry, and Washington previously proposed $22.8 billion in funding. The aid proposal is far from enough to fill this gap.

According to reports, in early August, the U.S. government once again expanded its ban on Huawei, prohibiting suppliers from selling chips made using U.S. technology to Huawei. At present, the US government is striving to support US semiconductor companies in moving their manufacturing centers out of Asia.

In early June of this year, Senator John Cornyn, Republican of Texas, and Senator Mark Warner, Democrat of Virginia, jointly introduced a bill, hoping to provide at least 228 for domestic semiconductor manufacturers. 100 million US dollars of financial support to encourage US manufacturers to build chip factories in the context of the current Sino-US technology war.

The construction cost of the chip factory is as high as 15 billion US dollars, and most of the expenditure is spent on expensive tools. Therefore, the proposal will provide a 40% refundable income tax credit for semiconductor equipment, and the aid funds include US$10 billion in federal funds for government incentives to build factories and US$12 billion in research and development funds.

Once the bill is passed, it will authorize the US Department of Defense to use funds in accordance with the National Defense Production Act to "establish and enhance local semiconductor production capabilities." Although there is a network of "trusted foundries" in the United States to help provide chips to the US government, many chips must still be purchased from Asia.

In this regard, Dan Hutcherson believes that the US$22.8 billion in financial support proposed by the US government is less than half of the required amount, and that the US$50 billion is more likely to achieve the expected results.