With federal money on the table, semiconductor industry is battling it out

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Written By Jennifer Joslyn

The US semiconductor industry is starting to stir as the $52 billion in subsidies from the CHIPS act sits on the table. Rival companies are starting to fight over the grants and tax credits - and it’s likely to get a little ugly.

Semiconductor companies require significant investments in research and development to stay competitive in the industry. Government subsidies can provide much-needed funding for these activities, which can help companies to develop new products and technologies that can boost their market position. Additionally, the highly-competitive nature of the market is forcing companies to stay at the forefront go technological advances in order to gain a significant advantage over rivals. Semiconductors are critical components of many high-tech products, including defense systems and advanced computing technology. The US government may offer subsidies to semiconductor companies to help ensure that the US remains a leader in semiconductor production, which is important for national security purposes.

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