The U.S. government requires chip companies to share excess profits

The United States Biden government said on Tuesday that companies that have obtained subsidies from their $ 52 billion semiconductor bill shared excess profits and explained how they plan to provide affordable children’s conservation services.

The U.S. Department of Commerce announced on Tuesday the application plan for the 39 billion US dollars of manufacturing subsidy projects, and will begin accepting applications at the end of June. The plan also provides 25%investment tax credit for chip factories, and is expected to be worth $ 24 billion. The “Chip Act” played a core role in the efforts of the Biden government that brought the semiconductor manufacturing back to the United States.

According to the US Department of Commerce, a chip company that has obtained more than $ 150 million directly funded, “will be asked to share with the US government any cash flow or return that exceeds the threshold of the applicant’s expectations.” The Ministry of Commerce predicts that “the project will be substantially shared by the project that is much better than its expected cash flow or return, and it will not exceed 75%of the direct funding rewards.”

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At the same time, the subsidy chip company prohibits the use of the funds obtained for dividends or stock repurchases. The company must provide any plan details of the repurchase of independent stocks in the next five years. The U.S. Department of Commerce will consider “the commitment to not repurchase stocks”.