US Chip Funding Plan Attracts $166 Billion Investments

The US Department of Commerce received more than 460 statements from companies interested in winning government semiconductor subsidy funding. President Joe Biden stated companies had invested more than $166 billion to bring semiconductor manufacturing back to the country.

The CHIPS and Science Act includes $52 billion in subsidies to boost domestic semiconductor research and manufacturing as the US seeks to better compete against China while addressing an ongoing global semiconductor shortage. President Biden noted US production had fallen from nearly 40% of the world’s chips to just more than 10%, making its economy vulnerable to global supply chain disruptions.

He stated the legislation will restore the nation’s place in the global production chain and reduce dependence on other nations for US electronics or clean energy supply chains. The DoC recently announced the first round of grants, involving the development of open and interoperable wireless networks. It also earmarked $11 billion for advanced semiconductor manufacturing R&D, including the establishment of the National Semiconductor Technology Center.