The CHIPS and Science Act, signed into law in 2022, aims to bolster domestic semiconductor manufacturing and reduce reliance on foreign suppliers. The act provides roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States. The CHIPS Act is an important piece of legislation that seeks to address the global chip shortage and strengthen the United States’ position in the semiconductor industry. The act has bipartisan support and includes several provisions to enhance research, development, and manufacturing capabilities.
One significant aspect of the act is the creation of the National Semiconductor Technology Center (NSTC). The NSTC will serve as a hub for semiconductor research and development (R&D), collaborating with industry, academia, and government agencies, which aims to accelerate the development of advanced chip technologies, and foster collaboration across the semiconductor ecosystem. In addition, the act also includes provisions for federal investment in chip manufacturing facilities and establishes a grant program to support the construction, expansion, or modernization of semiconductor manufacturing facilities in the US. This investment aims to increase domestic production capacity, reduce reliance on foreign suppliers, and strengthen supply chain resilience.
To support research and development efforts, the CHIPS Act provides funding for the National Science Foundation (NSF). The NSF will receive additional resources to advance semiconductor research, including the development of emerging technologies and workforce training programs. Furthermore, the act emphasizes the importance of addressing the semiconductor industry’s talent gap by supporting initiatives to enhance education and workforce development in the fields of science, technology, engineering, and mathematics (STEM). By investing in STEM education and training, the act aims to cultivate a skilled workforce to meet the industry’s demands. Here is an opinion piece we found of interest relating to the CHIPS Act.
Chips Act Won’t Work Without Every Part of the Chip
In an opinion piece “Chips Act Won’t Work Without Every Part of the Chip” for Bloomberg, Thomas Black, reporter, discusses the importance of addressing the entire semiconductor supply chain to effectively tackle the global chip shortage. He highlights the Chips for America Act (Chips Act), which aims to boost domestic semiconductor manufacturing and reduce dependence on foreign suppliers. While acknowledging the Act’s positive intent, Black argues that solely focusing on increasing fabrication facilities within the United States is not enough to resolve the supply chain issues. He emphasizes the significance of considering every aspect of the chip manufacturing process, including design, manufacturing equipment, materials, and packaging. According to Black, a holistic approach is necessary since each stage of the supply chain has its own complexities and vulnerabilities.
He points out that semiconductor manufacturing has become a global industry where countries specialize in different segments of the supply chain. Disrupting this intricate network by attempting to relocate all manufacturing processes to one country may lead to unintended consequences and could ultimately harm the global tech ecosystem. Black suggests that instead of pursuing a narrow, protectionist approach, collaboration and coordination among different nations, companies, and stakeholders should be fostered. Encouraging partnerships, diversifying supply chains, investing in research and development, and fostering innovation are some of the proposed strategies to address the chip shortage effectively. Read the full article on Bloomberg.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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