Gina Raimondo says The US Will Establish At Least Two chipmaking Ecosystems by 2030
The commerce secretary, Gina Raimondo, says the US plans to establish at least two chip manufacturing ecosystems by 2030. The US will use a portion of the $53 billion chip act funds to reintroduce chip manufacturing.
The United States is becoming a center for cutting-edge chip production
In today’s BNN breaking news, Gina on Thursday said the nation aims to establish an ecosystem comprising R&D labs, fabrication units, and final packaging units to assemble chips in the US. It will also cover the vendor’s contribution to chip manufacturing in the country. Gina went on to say that its vision is to make the US the only hub for high-volume manufacturers of cutting-edge chips in the world.
The details of how domestic companies can claim funds from the CHIP Act in the US will be revealed by the commerce department on Tuesday. Gina has not revealed where she intends to establish chip manufacturing ecosystems in the United States. However, the locations for chip manufacturing clusters could be Texas, Ohio, and Arizona, where the leading chip manufacturers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. of South Korea, and Intel Chip are engaged in the manufacturing of chips and planning investments.
Investments by established players in chip production facilities
In Texas, Samsung Electronics is establishing a plant with an investment of $17.3 billion. Taiwan Semiconductor Manufacturing Co. is building a project with an outlay of $40 billion in Phoenix. According to a communiqué, Intel would build chip manufacturing facilities in New Albany, Ohio, and Chandler, Arizona, with an investment of $20 billion each. Texas Instruments and Micron Technology Inc. would also invest significant amounts in chip production.
According to the US trade group, the Semiconductor Industry Association, the program has already triggered a boom in investments worth $200 billion in over 40 projects by both foreign and domestic manufacturers. President Joe Biden signed the chip act into law in August 2022, following approval by the US Congress. The Chip Act authorizes $3 billion in incentives to encourage the development and expansion of chip manufacturing facilities in the US. The R&D focusing on this initiative would also receive incentives of over $12 billion. The project also includes funding for developing the workforce.
The initiative comes against the backdrop of chip shortages experienced during the pandemic and delays caused in the production of appliances, autos, and other products. It is also against raising concerns about the concentration of sophisticated production plans for chip production in East Asia and the intensification of rivalry with China.
Industry advocates raise concerns about funding support
In today’s breaking news, concerns have been raised by industry advocates about whether the proposed funding is enough to meet the investments needed for establishing chip manufacturing clusters. They also doubt whether the US can provide skilled manpower for the development and operation of chip manufacturing facilities.
Gina said the government would also ask the chip manufacturing companies to train people at community colleges and schools to supply over 100,000 technicians in the next ten years to satisfy the growing demand for a skilled workforce in the aftermath of establishing chip production clusters.
