Commerce Secretary Gina Raimondo has expressed her hopes for the United States to become a global leader in the microchip industry by 2030. In a recent speech, Raimondo emphasized the importance of investments, such as those under the CHIPS and Science Act, in order to achieve this goal. The act authorizes $280 billion in funding to boost domestic research and manufacturing of semiconductors.
Semiconductors, also known as microchips or integrated circuits, are essential components in various industries and are used in everyday items such as phones, pacemakers, and military equipment. Raimondo highlighted the significance of these chips and the need for the United States to produce them domestically. Currently, the local production of semiconductors in the US is zero.
One area where the US hopes to establish its lead is in the production of microchips required for artificial intelligence (AI) development. Raimondo stressed that AI will be the defining technology of our generation, and in order to lead in this field, the US must also lead in manufacturing leading-edge chips. Despite being a leader in chip design and AI language models, none of the advanced chips required for AI are currently manufactured in the US.
To prioritize projects that will have an operational impact by 2030, Raimondo stated that the federal government has received over 600 proposals from semiconductor companies interested in receiving grants. However, only a “significant majority” will receive funding. The department aims to maximize its impact within this decade and therefore will not provide funding to projects with plans to come online after 2030.
Raimondo revealed that most semiconductor companies seeking government subsidies will not receive the amounts they have requested. While these companies have asked for over $70 billion, only $28 billion is currently available. Raimondo emphasized the need to be tough with companies during negotiations and stated that they will likely receive less than half of their requested amount.
Raimondo believes that the US can become the home to the entire silicon supply chain for the production of leading-edge chips. This includes polysilicon production, wafer manufacturing, fabrication, advanced packaging, and research and development. By investing in projects with a shorter turnaround time, the US can reduce its reliance on other countries for microchip production.
The US government’s push to lead in the microchip industry comes at a time when restrictions on semiconductor exports to China have been expanded. This move aims to slow China’s development of advanced military technology. US firms are now required to notify the government or obtain a license to export advanced semiconductor chips or the necessary manufacturing machinery.
Overall, Secretary Raimondo’s vision for the US to become a global leader in semiconductor manufacturing by 2030 is based on the importance of domestic production and investments in research and development. The CHIPS and Science Act plays a crucial role in providing funding and support to achieve this goal. As the world becomes increasingly reliant on semiconductors, particularly for AI development, the US aims to secure its position as a key player in the microchip industry.
