White House announces $11bn for chip R&D
Investment aims to protect against expansionist China
The White House plans to allocate $11 billion towards semiconductor-related research and development, aiming to bolster the USA's technological prowess and secure its competitive edge in the global market.
The announcement comes as part of the US government's ambitious National Semiconductor Technology Centre initiative, backed by a $5 billion investment. The Centre, a collaborative effort between the public and private sectors, academia and venture capitalists is poised to spearhead research and prototyping in cutting-edge semiconductor technology.
Commerce secretary Gina Raimondo emphasised the significance of the partnership, saying it would foster innovation and enable Americans to excel in the competitive semiconductor industry.
In an article by Reuters, energy secretary Jennifer Granholm highlighted the initiative's strategic importance, framing it as part of a broader industrial strategy aimed at preserving domestic jobs and fortifying national resilience. Granholm stressed R&D's "critical" role in maintaining US strength on the global stage, saying, "A nation that neglects R&D jeopardises its own future."
The Centre will also oversee an investment fund dedicated to supporting emerging semiconductor companies in their journey towards commercialisation.
The government's efforts also extend to the creation of the National Advanced Packaging Manufacturing Programme, and the establishment of new Manufacturing USA institutes focused on semiconductor R&D.
Raimondo revealed plans for major awards to fund chip manufacturing within the next two months, showing the government's commitment to revitalising domestic semiconductor production. While specific companies were not disclosed, she hinted at ongoing negotiations with industry leaders such as TSMC, Samsung and Intel.
Semiconductor manufacturing programme
The semiconductor manufacturing programme aims to provide crucial subsidies for chip production and supply chain investments, with a focus on building state-of-the-art facilities to bolster domestic production capacity.
"These investments represent a paradigm shift in the semiconductor industry," Raimondo said, emphasising the scale and complexity of the proposed facilities. With these initiatives, the United States aims to solidify its position as a global leader in semiconductor innovation and production.
Computing says:
The USA has been signalling a real commitment to semiconductors in the last two years; first with the 2022 CHIPS Act, and now this R&D investment - making a total of nearly $75 billion marked for the sector, nearly a third purely for R&D.
The EU has done similar, launching a €43 billion plan last year.
The USA and EU both aim to decrease their reliance on Asia, in the face of an increasingly expansionist (and Russia-friendly) China. Any move by China to retake Taiwan, for example, would have a devastating impact on semiconductor supply - far beyond what we experienced in 2020.
The UK simply can't match this level of investment; the £1 billion for chip development it promised last year is small potatoes in comparison. However, with appropriate targeting in areas where the UK already performs well, it could be money that really moves the needle for the industry.