For companies aiming to contribute to the revival of the US semiconductor industry, all support measures, from financial to regulatory, play a crucial role. Recently, the US House of Representatives approved certain relaxations in environmental legislation, allowing faster plant construction without adhering to strict requirements. These changes aim to speed up building projects for semiconductor manufacturing plants, reducing regulatory obstacles.
Companies that fail to comply with environmental legislation during plant construction may either face government disapproval or heavy fines. As Bloomberg highlights, this new bill exempts chip manufacturing projects from the general environmental approval process. Although the US Senate approved the bill last summer, discussions in the lower house caused delays due to heated debates. Initially, members of the US Republican Party sought broader application of these relaxations, but the final version offers benefits exclusively to companies in the semiconductor industry.
Conditions for Exemptions and the Bill’s Progress
To become law, the bill still requires the President’s signature. The concessions for semiconductor companies aim to accelerate plant construction while bypassing strict environmental regulations. However, for a project to be eligible, it must meet one of three conditions. The first condition requires construction to begin before the end of this year. Among the large projects financed under the “CHIP Act,” only Micron Technology’s plant in New York State doesn’t meet this timeline due to pending approvals, adds NIX Solutions.
The second option is to utilize preferential loans under the “CHIP Act” without seeking non-repayable government subsidies. So far, no program participant has fulfilled this requirement. Lastly, the third condition limits the subsidy amount to 10% of the total project costs, reduced from the 15% threshold in last year’s bill version.
These measures indicate a focused approach to encouraging semiconductor industry growth while easing regulatory burdens. We’ll keep you updated as the bill’s progress unfolds.