Updated February 10th, 2024 at 14:14 IST
White House announces $11 billion semiconductor R&D programme
The initiative, spearheaded by the US government, includes the launch of the $5 billion National Semiconductor Technology Centre.
The White House unveiled its ambitious plan to invest $11 billion in semiconductor-related research and development, highlighting a major step towards bolstering America's technological prowess and global competitiveness in the semiconductor industry.
The initiative, spearheaded by the US government, includes the launch of the $5 billion National Semiconductor Technology Centre, envisioned as a collaborative hub for industry stakeholders, academics, and government entities to drive innovation and address critical challenges in semiconductor technology.
The programme, which stems from the landmark Chips and Science Act passed by Congress in August 2022, allocates a total of $52.7 billion towards semiconductor production subsidies and research initiatives. The legislation also introduces a 25 per cent investment tax credit aimed at incentivising the construction of chip manufacturing facilities, with an estimated value of $24 billion.
Commerce Secretary Gina Raimondo stressed on importance of public-private partnerships in fostering innovation and enabling American companies to compete on a global scale. The National Semiconductor Technology Centre is set to serve as a collaborative platform for industry players to advance semiconductor technology and drive economic growth.
Energy Secretary Jennifer Granholm underscored the strategic importance of the semiconductor initiative in safeguarding American jobs and reinforcing the nation's industrial capabilities. Granholm stressed on the critical role of research and development in driving technological innovation and ensuring America's competitiveness in the global marketplace.
As part of the programme, the National Semiconductor Technology Centre will establish an investment fund to support emerging semiconductor companies in advancing cutting-edge technologies towards commercialization. Additionally, the legislation creates the National Advanced Packaging Manufacturing Programme and new Manufacturing USA institutes focused on semiconductor research and development.
Commerce Secretary Raimondo revealed plans to announce major awards to fund chip manufacturing within the next two months, signalling a concerted effort to accelerate domestic semiconductor production and strengthen the supply chain. The awards are expected to support the construction of advanced manufacturing facilities and increase chip production capacity in the United States.
Raimondo highlighted the complexity and scale of the proposed semiconductor manufacturing facilities, stressing their transformative potential for the domestic semiconductor industry.
Meanwhile, top companies such as TSMC, Samsung, and Intel have been actively involved in discussions regarding these groundbreaking initiatives, underscoring their strategic importance for America's technological future.
(With Reuters inputs)
Published February 10th, 2024 at 14:14 IST