Biden administration to require semiconductor chip companies winning subsidies to share excess profits

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Companies winning funding are also prohibited from using chips funds for dividends or stock buybacks, and must provide details of any plans to buy back their own shares over five years

The department will consider an “applicant’s commitments to refrain from stock buybacks in the application review process” in a five-step application.

White House economic adviser Heather Boushey said the announcement “is emblematic of using public incentives to simultaneously deliver on building strategic supply chains for our economic and national security while also investing in our care infrastructure.” The Semiconductor Industry Association said it was carefully reviewing the funding notice that “lays out the rules of the road for companies to apply for the CHIPS Act’s manufacturing grants.”

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