White House Unveils $11 Billion Semiconductor Initiative

The White House announced on Friday a significant investment of $11 billion into semiconductor-related research and development, highlighting the launch of the $5 billion National Semiconductor Technology Center.

This move follows the approval of the Chips and Science Act by Congress in August 2022, allocating a total of $52.7 billion for semiconductor initiatives, including $39 billion for production subsidies and $11 billion for research and development.

Additionally, the Act introduces a 25% investment tax credit aimed at incentivizing the construction of chip plants, estimated to be valued at $24 billion.

At the forefront of the research and development program is the National Semiconductor Technology Center, envisioned as a collaborative effort between the government, industry stakeholders, academic institutions, entrepreneurs, and venture capitalists.

U.S. Commerce Secretary Gina Raimondo emphasized the center’s role in fostering innovation, problem-solving, and facilitating American competitiveness on a global scale.

Energy Secretary Jennifer Granholm underscored the importance of this initiative as part of a broader industrial strategy to safeguard domestic jobs and enhance America’s technological capabilities.

Granholm emphasized the significance of investing in research and development, stating that it is essential for ensuring the nation’s strength and competitiveness in the semiconductor industry.

In addition to establishing the National Semiconductor Technology Center, the 2022 legislation also includes provisions for the National Advanced Packaging Manufacturing Program and the creation of new Manufacturing USA institutes focused on semiconductor technologies.

US chip industry to enter global competition (Credits: The Print)

Commerce Secretary Raimondo revealed plans to award major funding to chip manufacturing projects within the next two months, aiming to bolster domestic chip production and strengthen the semiconductor supply chain. She highlighted ongoing negotiations with various companies and anticipated several announcements in the coming weeks.

Raimondo emphasized the complexity and scale of the proposed investments, stressing that they represent a significant leap forward for the U.S. semiconductor industry. With companies like TSMC, Samsung, and Intel involved, these investments aim to establish cutting-edge manufacturing facilities and increase domestic chip production capacity.