Biden-Harris Administration Boosts Semiconductor Research with $5bn Investment
The Biden-Harris Administration is stepping up its efforts to strengthen domestic manufacturing with a $5 billion investment in semiconductor-related research, development, and workforce needs. Currently, the US produces less than 10% of the global supply of semiconductors and none of the most advanced chips. President Biden aims to change that with the implementation of the CHIPS and Science Act.
The recent injection of capital will support the establishment of the National Semiconductor Technology Centre (NSTC), which will play a pivotal role in the development of future semiconductor technologies. The NSTC will focus on supporting the design, prototyping, and piloting of these cutting-edge chips, ensuring that the US takes the lead in this critical field.
To achieve this, the NSTC will collaborate with various federal agencies, including the National Science Foundation, Department of Defense, Department of Energy, Department of Labor, and Department of Education. By tapping into the expertise of these agencies, the NSTC aims to accelerate the time and reduce the cost of commercializing new technologies.
The CHIPS and Science Act, enacted in August 2022, outlines a total funding of $11 billion for four key programs. Alongside the NSTC, these programs include the National Advanced Packaging Manufacturing Programme, the CHIPS Metrology Programme, and the CHIPS Manufacturing US Institute. Each program plays a crucial role in advancing semiconductor research and development.
This latest funding boost builds on the administration’s ongoing commitment to drive innovation in the US. Just last week, the White House and the National Science Foundation unveiled 10 US regions emerging as innovation ecosystems, receiving over $530 million in investment through the Regional Innovation Engines program. One of the key recipients is Osceola County, Florida, where the funding will be utilized to support advanced semiconductor packaging capabilities.
With this significant investment and continued support for the semiconductor industry, the Biden-Harris Administration aims to revitalize US manufacturing, bolster technological innovation, and reclaim the nation’s position as a global leader in semiconductors.
Analyst comment
Positive news: The Biden-Harris Administration’s $5 billion investment in semiconductor research is positive for the market. It shows a commitment to strengthening domestic manufacturing and boosting innovation in the semiconductor industry. This investment will help establish the National Semiconductor Technology Centre and accelerate the development of cutting-edge chips. It will also support other key programs outlined in the CHIPS and Science Act. Overall, this will revitalize US manufacturing, enhance technological innovation, and position the US as a global leader in semiconductors.
