A proposed $52 billion in federal funding for semiconductors could lead to the creation of seven to 10 new U.S. factories that produce chips.
U.S. Commerce Secretary Gina Raimondo expects the funding would generate over $150 billion in investment in local chip research and production.
“We just need the federal money… to unlock private capital,” Raimondo said this week, “it could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done.” Raimondo said states will likely compete for federal funding for chip facilities and indicated that the Commerce department would have a transparent process for awarding funding.
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Those in support of this move say that in 1990, the United States had a 37 per cent share of semiconductor and microelectronics production but now, it accounts for just 12 per cent of global production.
Auto News notes that the bill includes $39 billion in funding for production of semiconductors and R&D incentives and a further $10.5 billion to implement programs including the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program, and other R&D programs.
Texas Republican Senator John Cornyn has filed an amendment to remove prevailing wage provisions from the bill and is keen to see it passed.
“I don’t expect this is going to stop our achieving what we want to achieve,” Cornyn said of the wage issue. “It’s important but I think getting the Chips for America Act passed is essential.”
