Biden administration releases plan to implement $50B from CHIPS Act
The CHIPS for America program will 'revitalize' the US semiconductor industry
Akoustis Founder & CEO Jeff Shealy discusses how his companies’ semiconductor production will be impacted by Biden’s $280 billion chip funding package on ‘Cavuto: Coast to Coast.'
The Biden Administration unveiled a four point strategy Tuesday for the $50 billion bipartisan CHIPS and Science Act.
The CHIPS for America program aims to create "good-paying jobs" across the country and counter China's growing influence by:
- Establishing and expanding domestic production of leading edge semiconductors in the U.S., of which the U.S. currently makes 0% of the world’s supply,
- Building a sufficient and stable supply of mature node semiconductors,
- Investing in research and development to ensure the next generation semiconductor technology is developed and produced in the U.S. and
- Creating tens of thousands of good-paying manufacturing jobs and more than hundred thousand construction jobs.
Job creation will ensure a pipeline to expand opportunities to include people who have historically not had a chance to participate in this industry, including women, people of color, veterans and people who live in rural areas.
"Rebuilding America’s leadership in the semiconductor industry is a down payment on our future as a global leader," Commerce Sec. Gina Raimondo said in a statement.
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U.S. Secretary of Commerce Gina Raimondo listens as US 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 J … (Photo by Anna Moneymaker/Getty Images / Getty Images)
Around $28 billion is targeted for domestic production and investments in leading-edge logic and memory chip manufacturing. The department will seek proposals for constructing or expanding manufacturing.
For increasing domestic production, the department expects to make dozens of awards with the total value expected to reach approximately $10 billion.
The CHIPS research and development program will have $11 billion to invest in
- A National Semiconductor Technology Center,
- A National Advanced Packaging Manufacturing Program,
- Up to three new Manufacturing USA Institutes, and
- NIST metrology research and development programs.
Workers inside the clean room of US semiconductor manufacturer SkyWater Technology Inc where computer chips are made, in Bloomington, Minn., April 2022 in this handout picture acquired by Reuters on July 19, 2022. (SkyWater Technology/Handout via REUTERS/File Photo / Reuters Photos)
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"This constellation of programs is intended to create a dynamic new network of innovation for the semiconductor ecosystem in the United States," the department's press release noted.
US President Biden signs into law the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, D.C., Tues., Aug. 9, 2022. (Photo by Demetrius Freeman/The Washington Post via Getty Images / Getty Images)
The government will release specific application guidance for the CHIPS for America program in Feb. 2023, with awards and loans on a rolling basis.
MICRON TO INVEST $40 BILLION IN US MEMORY MANUFACTURING THROUGH END OF DECADE
In connection with Biden's announcement last month that he was signing the bill into law, Micron announced a $40 billion investment in memory chip manufacturing and Qualcomm and GlobalFoundries announced a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries’ upstate New York facility.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 102.64 | -0.12 | -0.12% |
| QCOM | QUALCOMM INC. | 156.79 | +1.33 | +0.86% |
| GFS | GLOBALFOUNDRIES INC. | 42.80 | +0.80 | +1.90% |