The head of the new US International Development Finance Corp. (DFC) said this week that the agency could provide tens of billions of dollars in funding to return manufacturing to the United States, according to a report by Reuters.
One of the projects it could fund is a $ 12 billion semiconductor factory from Taiwan, DFC CEO Adam Boehler told the news agency.
In conjunction with the Department of Defense, the DFC recently issued a call for proposals from companies seeking funding under the Defense Production Act, which prioritizes government orders in the midst of a war. or a national crisis. The Defense Department announced on June 22 that it would spend $ 100 million authorized by the CARES Act to boost the manufacturing of medical and pharmaceutical technology in the U.S. The Trump administration has been pushing for U.S. manufacturing to return to this country from China.
Boehler told Reuters that the new financial agency has received a lot of attention from the companies and that some may receive signed letters of agreement from the agency within the next month.
“The areas that are immediately lit are in PPE and pharmaceutical value chains,” Boehler said, adding that some pharmaceutical companies wanted to return generic drug production to the United States. Most generic drugs are imported, according to Reuters.
The DFC has used Korean War-era law to require certain manufacturers to produce ventilators and personal protective equipment much needed during the COVID-19 pandemic. For example, President Donald Trump ordered General Motors in March to start producing ventilators for COVID-19 patients In April, the Defense Department awarded $ 133 million in contracts for N95 ventilators to 3M (NYSE:MMM), Owens and Minor (NYSE:IMO) and Honeywell (NYSE:HON) under the law.
Under the $ 100 million DOD initiative, eligible projects are expected to help return production to the United States or strengthen associated national supply chains for personal protective equipment, testing supplies drugs, vaccines, pharmaceuticals, ventilation equipment or “relevant ancillary materials and technologies,” according to the defense. department.