KazPost

Kazakhstan News
Friday, Apr 19, 2024

US aims to create semiconductor manufacturing clusters with Chips Act funds

US aims to create semiconductor manufacturing clusters with Chips Act funds

At least two chipmaking ecosystems would be created by 2030, Commerce Secretary Raimondo says

The U.S. will target funds from the $53 billion Chips Act to create at least two semiconductor manufacturing clusters by 2030, according to Commerce Secretary Gina Raimondo, marking the initial stages of a plan to bring more chip manufacturing back to the U.S.

The aim would be to create ecosystems that would bring together fabrication plants, research-and-development labs, final packaging facilities for assembly of chips and the suppliers needed to support each phase of the operation, Ms. Raimondo said.

"When we are done implementing this by 2030, America will design and produce the world’s most advanced semiconductor chips," she told reporters in a briefing Wednesday.

U.S. Secretary of Commerce Gina Raimondo listens as U.S. President Joe Biden participates virtually in a meeting on the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, in the South Court Auditorium at the White House on


Ms. Raimondo is scheduled Thursday to outline the plans in a speech at Georgetown University. Next week, the Commerce Department is set to disclose further details on how companies can apply for funds.

Ms. Raimondo didn’t say where the clusters would be located, but Arizona, Ohio and Texas would likely be in the running based on investment plans by companies that now produce leading-edge chips: Intel Corp., South Korea’s Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co.

Intel has said it would invest $20 billion each in facilities in Chandler, Ariz., and New Albany, Ohio. TSMC has a $40 billion project under way in Phoenix, and Samsung Electronics is investing $17.3 billion in a plant in Texas.

Micron Technology Inc. and Texas Instruments also have disclosed investment plans.


The program has already triggered an investment boom, with U.S. and foreign manufacturers unveiling more than 40 projects for total investments close to $200 billion, according to the Semiconductor Industry Association, a trade group.

The Chips Act was signed into law in August by President Biden following its passage in Congress with bipartisan support. It provides $39 billion in incentives to help build and expand manufacturing facilities and more than $12 billion for research and development, as well as workforce development.

WASHINGTON, DC August 9, 2022: US President Biden signs into law the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, Tuesday, August 9, 2022. Left to right: Founder and CEO of SparkCharge Joshua Aviv, US President J


The legislation came after a shortage of semiconductors hurt the production of autos, appliances and other products during the pandemic and concerns grew about the concentration of advanced-chip production in East Asia as economic rivalry with China intensified.

Industry advocates have expressed concerns whether funding might be spread out too thinly, or if the U.S. would be able to field enough skilled workers to build and operate new facilities. Ms. Raimondo said the government would be pressing chip companies to join with high schools and community colleges to train more than 100,000 new technicians in the coming years.

As companies shifted factories overseas in search of cheaper labor and production costs, the U.S. share in the global semiconductor production has fallen to around 10% from 37% in 1990. The U.S. doesn’t mass-produce the most advanced chips, defined as those smaller than 5 nanometers, while Taiwan, at the center of geopolitical tensions with China, accounts for 85% of those.

"The Chips Act is so essential because over the past few decades, we as a country have taken our eye off the ball and let chip manufacturing move overseas," Ms. Raimondo said.

Will Hunt, an analyst for Georgetown’s Center for Security and Emerging Technology, recommends the U.S. reshore enough capacity to become fully sufficient in producing the most advanced chips.

Mr. Hunt, who now serves as a Commerce Department adviser, said in a 2022 report that $23 billion of incentives provided through the Chips Act would allow the three companies with such technologies—Intel, Samsung and TSMC—to maintain or establish long-term presences in the U.S. to meet the domestic needs through 2027.


Ms. Raimondo said the Chips Act would also fund plants making advanced memory chips—a segment now experiencing oversupplies and falling prices—on "economically competitive and sustainable terms." The U.S. also will increase its production capacity for current-generation and mature node chips, needed for autos, medical devices and defense equipment, she added.

The rollout of the application process is expected to intensify the competition among companies vying for the subsidies.

Ms. Raimondo said the selection of recipients will be driven by how their plans fit into the government’s national security goals. "The purpose of this legislation isn’t to subsidize companies because they’re struggling in this cyclical downturn. It isn’t to help companies necessarily become more profitable in America," she said. "The reality is the return on our investment here is the achievement of our national security goal."

She added that there will be "many disappointed companies" over the amounts they will receive.

The new clusters will be built by union workers as called for under the terms of the Chips Act, Ms. Raimondo said, and afterward will be a source of thousands of jobs, many of which won’t require a college degree.

The Chips Act will also fund a research- and-development program called the National Semiconductor Technology Center, which will bring together universities, the industry, entrepreneurs and private capital to work on advanced technologies, she said, and help meet the need to triple the number of college graduates in semiconductor-related fields over the next decade.

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×