Administration of US President Joe Biden told on plans to invest $50 billion to launch the semiconductor industry under the CHIPS Act.
According to US Secretary of Commerce Gina Raimondo, about $28 billion is earmarked for increased production of logic and memory chips using advanced processes. The government plans to allocate funds in the form of grants and loans for the construction and expansion of capacities for the production, testing, assembly and packaging of processors.
The authorities are also seeking to increase the production of old chips. $10 billion will be directed to the creation of semiconductors for cars, communications technology, medical devices, defense and other critical commercial sectors. Another $11 billion will go to research and development.
The government will begin accepting applications by early February 2023. Raimondo said the department could start disbursing funds as early as next spring.
In addition, recipients of federal funding will be banned from building “advanced technology” facilities in China for 10 years.
“We are going to put up barriers to ensure CHIPS recipients cannot endanger national security. […]. They can’t use this money to invest in China, they can’t develop advanced technology in China. […] for a period of 10 years,” said Raimondo.
She added that subsidized companies will only be able to expand mature assembly plants in China to serve the local market.
The ministry is confident that the CHIPS Act will help the United States regain the world championship in the production of semiconductors. According to the agency, the US is responsible for only 10% of global chip capacity and just 3% of global packaging, assembly and testing services.
“The United States is no longer producing the world’s most advanced semiconductors and has lost its ability to produce key supply chain resources,” the ministry acknowledged.
The agency added that China’s recent gains in chip manufacturing have exacerbated the risk of disruption to U.S. logistical and manufacturing processes.
Recall that in July, the US Congress passed a law to stimulate the production of chips. The initiative will reduce the United States’ dependence on foreign suppliers, reduce the price of electronics, and create thousands of new jobs, the authors say.
In September, the US Department of Commerce restricted the export of chips used for supercomputers and artificial intelligence to China and Russia. The ban includes products from Nvidia and AMD.
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Administration of US President Joe Biden told on plans to invest $50 billion to launch the semiconductor industry under the CHIPS Act.
According to US Secretary of Commerce Gina Raimondo, about $28 billion is earmarked for increased production of logic and memory chips using advanced processes. The government plans to allocate funds in the form of grants and loans for the construction and expansion of capacities for the production, testing, assembly and packaging of processors.
The authorities are also seeking to increase the production of old chips. $10 billion will be directed to the creation of semiconductors for cars, communications technology, medical devices, defense and other critical commercial sectors. Another $11 billion will go to research and development.
The government will begin accepting applications by early February 2023. Raimondo said the department could start disbursing funds as early as next spring.
In addition, recipients of federal funding will be banned from building “advanced technology” facilities in China for 10 years.
“We are going to put up barriers to ensure CHIPS recipients cannot endanger national security. […]. They can’t use this money to invest in China, they can’t develop advanced technology in China. […] for a period of 10 years,” said Raimondo.
She added that subsidized companies will only be able to expand mature assembly plants in China to serve the local market.
The ministry is confident that the CHIPS Act will help the United States regain the world championship in the production of semiconductors. According to the agency, the US is responsible for only 10% of global chip capacity and just 3% of global packaging, assembly and testing services.
“The United States is no longer producing the world’s most advanced semiconductors and has lost its ability to produce key supply chain resources,” the ministry acknowledged.
The agency added that China’s recent gains in chip manufacturing have exacerbated the risk of disruption to U.S. logistical and manufacturing processes.
Recall that in July, the US Congress passed a law to stimulate the production of chips. The initiative will reduce the United States’ dependence on foreign suppliers, reduce the price of electronics, and create thousands of new jobs, the authors say.
In September, the US Department of Commerce restricted the export of chips used for supercomputers and artificial intelligence to China and Russia. The ban includes products from Nvidia and AMD.
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