U.S. Commerce Secretary Gina Raimondo has announced that the United States is poised to manufacture approximately 20% of the world's logic semiconductors by the end of the decade. This surge in semiconductor production is supported by the CHIPS and Science Act, signed into law by President Biden in 2022, through which companies seeking to establish new semiconductor fabs, packaging facilities, and assembly factories have requested over $70 billion in federal subsidies.
While the demand for funding significantly surpasses the available resources, with more than 600 companies expressing interest, the CHIPS Act has already allocated funding for several projects. Notably, investments have been made in BAE Systems, Microchip Technology, and GlobalFoundries, with forthcoming funding expected for Intel Corp.
Raimondo highlighted the critical importance of leading-edge logic chip manufacturing and its role in cementing the U.S.'s position in the global semiconductor market, emphasizing that AI will be a key technology for years to come and affirming the necessity of supporting AI semiconductor development. Looking ahead, Raimondo hinted at the potential need for additional funding beyond the current act to sustain momentum and supply chain diversification, particularly emphasizing the significance of AI in any future legislation.
The endeavor to bolster domestic semiconductor manufacturing is motivated not only by the economic benefits but also by the imperative to enhance national security and mitigate supply chain vulnerabilities in the face of global disruptions such as the COVID-19 pandemic. This initiative mirrors similar efforts in other regions, including Japan and Europe, as countries work to expand regional supply chains for semiconductors.
