According to the Nikkei Asian Review, as the Sino-US science and technology war is gradually intensifying, the US Congress is planning to provide chip manufacturers with about $25 billion in government subsidies to allow companies to move their production lines back to the United States through huge subsidies.

The report pointed out that the US decision to provide huge subsidies to any industry is very rare, and the market is worried that such direct support may distort the market.

According to a report released by the Information Technology and Innovation Foundation (ITIF), US semiconductor manufacturers’ sales accounted for 47% of the global market in 2019, followed by Korean companies, which accounted for It is 19%, and Japanese companies are 10%.

However, the Boston Consulting Group estimates that US chipmakers only account for 12% of global usage of semiconductors, most of which come from fabless design companies such as Nvidia and Qualcomm.

In contrast, chips produced by Chinese manufacturers account for 15% of global usage and are expected to grow to 24% in 10 years. This means that China may become the world's largest supplier of chips.

For the United States, this is definitely not good news. According to reports, the United States has included this subsidy in its fiscal year 2021 budget starting in October.

According to a bipartisan draft bill, the federal government will provide up to $3 billion in subsidies for each semiconductor factory investment project.

At the same time, the US Congress is also considering providing funding subsidies for the Department of Defense. It is understood that the Pentagon hopes to invest US$5 billion in manufacturing chips dedicated to national security, and another US$5 billion for general research and development in this field.

In addition, US state and municipal governments will also provide tax incentives and other policy assistance for chip manufacturers.