US investing $5bn in R&D for semiconductors
New York, US – US President Joe Biden's administration is investing more than $5bn into semiconductor-related development to strengthen America's chip industry as demand for artificial intelligence (AI) tech hardware booms.
The administration said Friday the money will go toward the research and development (R&D) of semiconductors as well as developing workforce in the industry.
The announcement is the latest phase of the CHIPS and Science Act of 2022, which created the largest publicly funded R&D programme in American history to support chip manufacturing in the US and reduce reliance on other countries.
"These investments advance US leadership in semiconductor R&D, cut down on the time and cost of commercializing new technologies, bolster US national security, and connect and support workers in securing good semiconductor jobs," the White House said.
The White House announced its first grant under the CHIPS and Science Act in December. Defense contractor BAE Systems (BAESY) received $35mn to modernise an ageing factory in Nashua, New Hampshire. The move sent shares of chipmakers like Intel and Advanced Micro Devices (AMD) higher at the time.
Last month, the US Commerce Department also said it would grant Microchip Technology (MCHP) $162mn in federal funding from the CHIPS Act to boost chip production.
In 2024, the Biden administration appears to be attempting to finally start funding a promised $11bn total in research and development efforts.
Last year, the Semiconductor Industry Association (SIA) released a study showing that the US was not adequately preparing a highly skilled workforce. Between "67,000, or 58%, of projected new jobs, may remain unfulfilled at the current trajectory," SIA estimated.