Biden administration, Samsung and others rush to finalize semiconductor law agreement

Amid growing uncertainty over policy continuity due to the regime change, the Joe Biden administration is reportedly rushing to finalize a semiconductor law agreement with Samsung Electronics Co. and others for the rest of his term.

Citing multiple anonymous sources, Bloomberg reported on the 7th local time, "Samsung Electronics and Intel and Micron are still dealing with some key details regarding the contract."

"Some companies, including TSMC and Global Foundry, have finalized negotiations and are expected to announce final grants soon," it said, citing other sources.

The semiconductor law enacted in 2022 under the Biden administration provides a total of $52.7 billion over five years to semiconductor companies investing in the United States, including $39 billion in production subsidies and $13.2 billion in R&D subsidies.

Major global semiconductor companies such as Samsung Electronics, SK Hynix, and Taiwan TSMC will receive subsidies in exchange for building factories in the United States.

The U.S. Department of Commerce has allocated more than 90% of the grants, but only one binding contract has been announced, and more than 20 companies are still unable to complete the process, making President Biden's remaining two months in office critical.

Bloomberg said U.S. authorities have long aimed to finalize as many contracts as possible by the end of the year to ensure that funds flow into companies.

In addition, Republican former President Donald Trump's victory in the presidential election has added urgency to the Biden administration, and semiconductor companies are also trying to avoid renegotiating under the second Trump administration.