Washington, February 10, 2024, The Europe Today: In a significant stride towards bolstering the United States technological capabilities, the White House announced on Friday the implementation of the U.S. government’s ambitious plan to allocate $11 billion for semiconductor-related research and development. Simultaneously, the government unveiled the inauguration of the $5 billion National Semiconductor Technology Center, marking a pivotal milestone in the realization of the landmark Chips and Science Act approved by Congress in August 2022.
The Chips and Science Act, a groundbreaking legislation, earmarks $52.7 billion for the semiconductor industry, comprising $39 billion in subsidies for semiconductor production and an additional $11 billion dedicated to research and development. Further enhancing the incentive structure, the Act introduces a 25% investment tax credit, estimated at a remarkable $24 billion, for the construction of chip plants.
At the heart of the R&D initiative stands the National Semiconductor Technology Center, designed as a “public-private partnership that brings together government, industry, customers, suppliers, academics, entrepreneurs, and venture capitalists to innovate, connect, network, solve problems, and position Americans to compete globally,” as emphasized by U.S. Commerce Secretary Gina Raimondo during a White House event.
Speaking at the event, Energy Secretary Jennifer Granholm underscored the strategic importance of the initiative within an “industrial strategy around chips,” aiming to safeguard domestic employment and generate new job opportunities in the United States. Granholm stated, “A nation that does not invest in research and development is a weak nation. We are not going to be weak anymore.”
The National Semiconductor Technology Center (NSTC) will play a central role in advancing semiconductor technology through research and prototyping. Additionally, it will establish an investment fund to support emerging semiconductor companies in progressing their technologies towards commercialization.
The 2022 legislation extends its reach beyond the NSTC, creating the National Advanced Packaging Manufacturing Program and new Manufacturing USA institutes with a focus on semiconductors. Commerce Secretary Gina Raimondo affirmed plans to make major awards to fund chip manufacturing within the next two months, stating, “In the next six to eight weeks, you will see several more announcements. That’s what we’re striving for.”
The semiconductor manufacturing program is poised to substantially subsidize chip production and related supply chain investments, ultimately boosting production capacity and fortifying the nation’s position in the global semiconductor market.