US Secretary of Commerce Gina Raimondo says boosting US manufacturing of semiconductors is a matter of national security – Copyright AFP/File YANN COATSALIOU
The Biden administration released plans to dispense $50 billion aimed at building up the domestic semiconductor industry while countering China.
According to the New York Times, this move by the U.S. Commerce Department is expected to be the biggest U.S. government effort in decades to shape a strategic industry.
The Commerce Department hopes that by February 2023, it can begin seeking applications for $39 billion in government semiconductor chips subsidies to build new facilities and expand existing U.S. production.
The strategy, released today, outlines the initiatives, strategic goals, and guardrails guiding the CHIPS for America program:
“Rebuilding America’s leadership in the semiconductor industry is a down payment on our future as a global leader,” said U.S. Secretary of Commerce Gina Raimondo. “CHIPS for America, will ensure continued US leadership in the industries that underpin our national security and economic competitiveness. Under President Biden’s leadership, we are once again making things in America, revitalizing our manufacturing industry after decades of disinvestment and making the investments we need to lead the world in technology and innovation.”
The fund, which was approved by Congress in July, was created to encourage U.S. production of strategically important semiconductors and spur research and development into the next generation of chip technologies.
The fund includes $52.7 billion for semiconductor manufacturing and research and a 25 percent investment tax credit for chip plants, estimated to be worth $24 billion. That credit applies to projects that start construction after Jan. 1.
Trade experts have called the fund the most significant investment in industrial policy that the United States has made in at least 50 years. It will come at a pivotal moment for the semiconductor industry.
Semiconductors – the brains of modern technology
Semiconductors are an essential component of electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.
Semiconductors, or as they are sometimes called – integrated circuits or microchips, are made from pure elements, usually silicon or germanium, or compounds such as gallium arsenide.
Semiconductor chips replaced the tubes, managing machines faster, cheaper, and more efficiently. Advances in design and size led us to light and sleek modern phones and smart equipment in a range of industries.
The one thing that is absolutely amazing about semiconductors is their importance in almost every aspect of our lives. Take a moment and try to imagine life today without semiconductors…;