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The Commerce Department on Tuesday took another step toward boosting chip manufacturing in the U.S., announcing that it will start dispersing $39 billion to companies that want to build semiconductor factories in the country as soon as spring 2023.
The funding, which President Joe Biden authorized in August, is part of one of the largest federal programs the government has ever administered to boost a single industry. The $52.7 billion CHIPS and Science Act aims to build up the domestic semiconductor industry and counter the national security implications of relying on chips made in China or Taiwan.
Semiconductors are a vital part of almost every technology in use today, from cars to video games to defense missiles. They used to be a relatively inexpensive component, one that cost as little as two cents to manufacture in the 1970s, but these tiny electronic switches are now part of the country’s supply chain woes and leading to higher prices for just about every device.
More than half of the total funding, about $28 billion, will go toward grants and loans to help build facilities that manufacture, assemble, and package the logic and memory chips that have been in short supply for over two years. Another $10 billion will go towards expanding manufacturing capacity for older generations of chips often used in cars and medical devices, while an additional $11 billion will go towards research and development spending.
Several semiconductor companies including GlobalFoundries, Micron, Qualcomm and Intel have already announced plans to make major investments in the U.S. that likely qualify for government funding.
Commerce Secretary Gina Raimondo said at a White House press briefing on Tuesday that the funding could be awarded to companies as early as next spring, particularly for smaller projects that only…
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Source : time
