The Biden administration has released its plans to begin accepting applications in late June for its silicon manufacturing subsidy programme, including requirements for companies to share excess profits and explain how they plan to provide affordable childcare.
Companies winning funding are also prohibited from using the 'Chips and Science' funds for dividends or stock buybacks, and must provide details of any plans to buy back their own shares over five years.
Although no companies have said they would scrap expansion plans to build in the US, industry sources told Reuters that the unexpected provisions make the funds less attractive.
The most contentious part of the conditions seems to be the profit-sharing requirements, which would mean each company would have to negotiate separate agreements with the US government.
“I believe this is going to cause heartburn for companies," one chip industry executive told Reuters, requesting anonymity to...