NEW YORK: Chipmakers across the globe are pouring billions of dollars in investment to set up new plants, encouraged by the rising use of semiconductors in everyday devices and generous subsidies from the United States and the EU aimed at keeping the West ahead of China in the race for cutting-edge technology.

The European Commission has earmarked 15 billion euros for public and private semiconductor projects by 2030, while US President Joe Biden’s administration passed the CHIPS Act last year to provide more than $52 billion in subsidies to the American semiconductor industry.

The Act deters companies using US funds from undertaking any big expansion of overseas semiconductor manufacturing facilities in “countries of concern” such as China for 10 years, with some exceptions.

India, Taiwan and South Korea have also offered incentives such as tax breaks to boost domestic chip production.