CHIPS and Science Act to attract circuit manufacturing to the US

The circuit shortage that has ravaged the past few years has made the dependence on a few companies very clear. Although the design of these largely takes place at American companies such as AMD, Intel and Nvidia, the absolute majority of production takes place in Asia. The United States today accounts for 10 percent of semiconductor production, and when it comes to manufacturing the most advanced circuits, the country is completely absent. The American government wants to change this through significant investments and subsidies, which are now being hammered through.

With a recent signature from US President Joe Biden, the new act will CHIPS and Science Act make it easier for companies to expand production in the United States. The act includes a major monetary investment in semiconductor manufacturing totaling $52.7 billion, $39 billion of which will be manufacturing incentives. USD 13.2 billion is to be used for research and development work and the development of a suitable workforce. Additional motivation for investors is to take place through favorable tax rules, which from the American side are compensated by USD 24 billion.

CHIPS and Science Act Lisa Su.jpg

AMD’s Lisa Su on site. Image source: Lisa Su

Access to the money requires the companies not to build certain facilities in China, which is also expanding its semiconductor manufacturing. Several companies have jumped on the bandwagon so far, with a total investment of just under USD 50 billion. The biggest investment comes from memory maker Micron, which is putting $40 billion into manufacturing memory chips in the United States. This should create 40,000 new jobs and increase the US market share of memory manufacturing from 2 to 10 percent within 10 years.

Qualcomm, Intel and Globalfoundries are also on board. Over the next five years, Qualcomm will increase its production of semiconductors in the US by 50 percent, while Globalfoundries will expand its facility in northern New York. The White House writes that the act will create thousands of jobs in both the construction and semiconductor industries, while at the same time it will lead to investments worth hundreds of billions of USD.

Read more about measures to manufacture circuits at home:


Source: SweClockers by www.sweclockers.com.

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