Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
×