Sec. Raimondo Outlines Plans for US Semiconductor Manufacturing, CHIPS Act Allocation
Making semiconductors in the United States is a critical part of national security, according to Secretary of Commerce Gina Raimondo, who spoke to reporters Wednesday ahead of her remarks at Georgetown University on Thursday about the importance of semiconductors.[0] The law, the $280 billion CHIPS and Science Act, passed last year, directs tens of billions of dollars to spur research in and development of the domestic semiconductor industry.[1]
Semiconductors are essential computer chips used in everyday items including refrigerators, dishwashers, cars and smartphones.[0] Currently, they are primarily made overseas, largely in Taiwan.[0] Over the past few decades, the US has taken its eye off the ball and allowed chip manufacturing to go overseas, Raimondo said.[0]
The centerpiece of the plans, which Raimondo laid out during her speech, is the creation of at least two semiconductor manufacturing and research hubs in the US.[2] Every hub will be equipped with a “robust supplier ecosystem, R&D facilities to innovate new process technologies continuously, and specialized infrastructure” and will create thousands of new jobs in the local economy.[2]
Raimondo likened the endeavor to President Lincoln's establishment of the land-grant college network, nuclear security in the 1940s, and John F. Kennedy's renowned demand to place a person on the moon.[3] She asserted that educational institutions must collaborate with the semiconductor industry in order to guarantee that students acquire the essential proficiency for the occupation upon graduation.[4] The administration is urging these companies to collaborate with high school and community colleges to train more than 100,000 technicians in the next 10 years.[4]
The passage of the CHIPS Act allocated $39 billion for incentives to promote the manufacturing of products and the expansion of existing companies.[4] Next week, the Commerce Department will roll out the application process for companies to apply for these funds.[0] And the US will strategically increase its production capacity for the current-generation and mature-node chips most critical to its economic and national security.[5] Chips found in cars, medical devices, and defense systems are integral components.[5]
Ultimately, the goal of the CHIPS and Science Act is to ensure that at the end of implementation, the United States of America is the only country in the world where every company capable of producing leading-edge chips will have a significant research and development and high-volume manufacturing presence in our country.[0] This presents the US with an opportunity to make investments that are consequential for its future.[6]
0. “CHIPS Act will strengthen US national security by boosting access to semiconductors: Raimondo – WEIS | Local & Area …” weisradio.com, 22 Feb. 2023, https://weisradio.com/2023/02/23/chips-act-will-strengthen-us-national-security-by-boosting-access-to-semiconductors-raimondo/
1. “CHIPS Act will strengthen US national security by boosting access to semiconductors: Raimondo” ABC News, 23 Feb. 2023, https://abcnews.go.com/Politics/chips-act-strengthen-us-national-security-boosting-access/story?id=97390012
2. “Commerce Secretary Gina Raimondo announces plans for two semiconductor factory hubs” Washington Examiner, 23 Feb. 2023, https://www.washingtonexaminer.com/policy/technology/raimondo-chips-hub-construction
3. “Biden official drops new details on how it will spend $50 billion on semiconductors” Yahoo News, 23 Feb. 2023, https://news.yahoo.com/biden-official-drops-new-details-on-how-it-will-spend-50-billion-on-semiconductors-123723542.html
4. “Commerce secretary lays out Biden administration's vision for implementing the CHIPS act over the next decade” kwwl.com, 23 Feb. 2023, https://www.kwwl.com/news/national/commerce-secretary-lays-out-biden-administrations-vision-for-implementing-the-chips-act-over-the-next/article_c684e143-6c56-5677-87c0-3468feea546a.html
5. “Secretary Raimondo: The CHIPS Act and a long-term vision for America's technological leadership” American Journal of Transportation, 23 Feb. 2023, https://www.ajot.com/news/secretary-raimondo-the-chips-act-and-a-long-term-vision-for-americas-technological-leadership
6. “US Takes Security-First Focus in Doling Out $39 Billion Chip Aid” Yahoo News, 23 Feb. 2023, https://news.yahoo.com/us-takes-security-first-focus-100000620.html
