0
0
Influx of Federal Funding for Semiconductor Manufacturing
The United States continues to intensify its efforts to bolster domestic chipmaking capabilities in order to compete with China. The nation’s premier producer of computer memory chips, Micron, is the latest recipient of substantial federal funding towards this objective.
Micron’s $6.1 Billion Allocation
Micron is slated to receive $6.1 billion in funds from the CHIPS and Science Act to establish advanced chip fabrication plants in central New York and Idaho, as announced by the Biden administration. This funding forms part of a comprehensive $100 billion public-private initiative spanning the next two decades, aimed at constructing a cutting-edge “mega-fab project” in central New York for memory chip production.
Senate Majority Leader Chuck Schumer emphasized the economic impact of Micron’s endeavor, highlighting the creation of 50,000 jobs in central New York. The initial tranche of Micron’s CHIPS Act funding will be dedicated to constructing the first two out of four planned fabs by the end of the decade.
The Biden administration foresees an aggregate of 70,000 employment opportunities arising from the investments in New York and Idaho. Schumer underscored the strategic importance of securing domestic chip production capabilities, elucidating that the COVID-19 crisis underscored the vulnerability of global supply chains and the necessity of localizing critical component manufacturing for economic resilience and national security.
Industry Trends and Federal Initiatives
In a parallel development, semiconductor stalwart Intel previously secured $8.5 billion in direct federal funding from the act, in addition to qualifying for up to $11 billion in federal loans. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) received $6.6 billion in grants, accompanied by the eligibility for up to $5 billion in loans for its inaugural chipmaking facility in the U.S.
The CHIPS Act, which was enacted into law in 2022, encompasses $39 billion in manufacturing inducements to fortify American primacy in the semiconductor domain. Entities such as GlobalFoundries, Microchip Technology, and BAE Systems have also been named as beneficiaries of the federal incentives program to accelerate innovation and bolster the nation’s technological competitiveness.
Image/Photo credit: source url
