President Biden takes a bow with the release of the Fact Sheet: “One Year after the CHIPS and Science Act, Biden-Harris Administration Marks Historic Progress in Bringing Semiconductor Supply Chains Home, Supporting Innovation, and Protecting National Security.” The Fact Sheet states:
One year ago, President Biden signed into law the CHIPS and
Science Act (CHIPS), which makes a nearly $53 billion investment in U.S.
semiconductor manufacturing, research and development, and workforce. The law
also creates a 25 percent tax credit for capital investments in semiconductor
manufacturing, and is helping to keep America at the forefront of innovation
and technological development. Semiconductors were invented in the United
States, but today we produce only about 10 percent of global supply—and none of
the most advanced chips. Similarly, investments in research and development
have fallen to less than 1 percent of GDP from 2 percent in the mid-1960s at
the peak of the space race. The CHIPS and Science Act aims to change this
by driving American competitiveness, making American supply chains more
resilient, and supporting our national security and access to key technologies.
In the one year since CHIPS was signed into law, companies
have announced over $166 billion in manufacturing in semiconductors
and electronics, and at least 50 community colleges in 19 states have announced
new or expanded programming to help American workers access good-paying jobs in
the semiconductor industry. In total, since the beginning of the Biden-Harris
Administration, companies have announced over $231 billion in commitments in
semiconductor and electronics investments in the United States. This week
alone, the Department of Commerce announced the first round of grants under
CHIPS to support the development of open and interoperable wireless networks,
and the National Science Foundation and Departments of Energy, Commerce, and
Defense announced progress toward establishing the National Semiconductor
Technology Center, which will help advance America’s leadership in
semiconductor research and development.
One Year of Progress on Semiconductor Manufacturing and
Innovation
Over the past year, agencies across the federal government
have been developing and executing on programs established under CHIPS to
encourage domestic semiconductor manufacturing, invest in research and
development, and support supply chain resilience and workforce development. Key
milestones in the Administration’s implementation of CHIPS include:
Supporting U.S. Semiconductor Manufacturing
- The Department of Commerce launched the first funding
opportunity for the $39 billion in semiconductor manufacturing
incentives provided in the Act just six months after CHIPS was passed.
This funding opportunity covers funding for projects to construct, expand,
or modernize facilities producing semiconductors and for projects that are
making large investments in facilities to produce semiconductor materials
and manufacturing equipment. As the Department assesses applications,
economic and national security considerations will be key factors and the
program will, among other objectives, aim to provide a supply of secure,
national-security relevant semiconductors.
- Already, the Department of Commerce has received more
than 460 statements of interest from companies for projects across 42
states interested in receiving CHIPS funding to invest across the
semiconductor value chain from manufacturing to supply chains to
commercial R&D.
- The Department of Commerce has also stood up CHIPS
for America, a team of more than 140 people working to support
implementation of all aspects of the CHIPS incentives program.
- The Department of the Treasury released a proposed rule in
March 2023 to provide guidance on the Advanced Manufacturing Investment
Credit, a 25% investment tax credit for companies engaged in semiconductor
manufacturing and producing semiconductor manufacturing equipment. The
Department of the Treasury also released a proposed rule in
June 2023 to allow companies to receive the full amount of the Advanced
Manufacturing Investment Credit as a direct payment from the Internal
Revenue Service.
Protecting National Security and Working with Allies and
Partners
The Department of Commerce issued a proposed
rule in March 2023 to implement the national security guardrails laid
out in CHIPS. These guardrails are intended to prevent technology and
innovation funded by the program from being misused by foreign countries of
concern. The Department of the Treasury’s proposed rule in
March 2023 implemented parallel guardrails for the Advanced Manufacturing Investment
Credit.
- The Department of State announced in March 2023 its
plans for implementing the International
Technology Security and Innovation Fund to support semiconductor
supply chain security and diversification, as well as adoption of
trustworthy and secure telecommunications networks. The State Department
has already announced partnerships with Costa
Rica, Panama,
and the OECD to
explore opportunities to collaborate on the global semiconductor supply
chain.
- The Department of Defense and Department of
Commerce signed an
agreement to expand their collaboration to make sure that CHIPS
investments will position the United States to manufacture semiconductors
essential to national security and defense programs.
- As it implements CHIPS, the Department of Commerce
has been in close touch with a number of partners and allies including the
Republic of Korea, Japan, the United Kingdom, India, and the European
Union. The United States is engaging with partners and allies to
coordinate government incentive programs, build resilient cross-border
semiconductor supply chains, promote knowledge exchange and collaboration
in developing next-generation technologies, and implement safeguards to
protect national security.
Creating Jobs and Workforce Pipelines for American Workers
- The White House announced an initial set of five
Workforce Hubs to create pipelines for Americans to access good-paying
jobs in the semiconductor industry and other industries seeing an increase
in investments driven by President Biden’s Investing in America agenda –
including CHIPS, the Inflation Reduction Act, and the Bipartisan
Infrastructure Law. The White House also announced a national Workforce
Sprint focused on creating pipelines into advanced manufacturing jobs,
including in the semiconductor industry.
- At least 50 community colleges have already announced
new or expanded semiconductor workforce programs. In July, the White House
launched its first Workforce Hub in Columbus, Ohio, where Columbus State
Community College announced a new partnership with Intel which will create
a new semiconductor technician credentialing course, available this fall.
- The National Science Foundation is investing in the
American semiconductor workforce through new
initiatives focused on the manufacturing workforce, supporting
researchers, and curriculum development. This includes partnerships with
major semiconductor and technology companies.
- According to Handshake, student applications to
full-time jobs posted by semiconductor companies were up 79% in
2022-2023, compared to just 19% for other industries.
Investing in Innovation
- The Department of Commerce is partnering with the
Department of Defense, the Department of Energy, and the National Science
Foundation to establish the National Semiconductor Technology Center
(NSTC), a critical part of the CHIPS research and development program that
will support U.S. leadership in semiconductor innovation, cut down on the
time and cost of commercializing new technologies, and develop the
semiconductor workforce. The Department of Commerce has also outlined
its strategy for
the NSTC with respect to extending U.S. leadership in semiconductor
innovation, reducing time to commercialization, and building a strong
microelectronics workforce.
- The Department of Commerce is also continuing to work
on other parts of its $11 billion R&D funding including the metrology
program, the National Advanced Packaging Manufacturing Program, and up
to three new Manufacturing USA Institutes.
- The Department of Defense released a Request
for Solutions for its Microelectronics Commons R&D program in
December 2022. This program will support hardware prototyping, the
transition of new technologies from lab-to-fab, and workforce training.
Source selection is currently underway.
Supporting Regional Economic Development and Innovation
- The Department of Commerce released a funding
opportunity in May 2023 for Phase 1 of the $500 million Tech
Hubs Program. This is an economic development program to develop
centers of innovation across the country through support of regional
manufacturing, commercialization, and deployment of key technologies.
- The Department of Commerce released a funding
opportunity in June 2023 for Phase 1 of the $200 million Recompete
Pilot Program, an initiative to support economic opportunity and
create good jobs in persistently distressed communities.
- The National Science Foundation established a
new Directorate for Technology, Innovation, and Partnerships. This
Directorate has already launched the NSF Regional
Innovation Engines program, which is helping to support
innovation in geographies that have not received the full benefits of technology
advancement in past decades. In May 2023, NSF
announced 44 NSF Engines Development Awards spanning 46 U.S. states and
territories, each funded at up to $1 million over two years to plan
for a future NSF Engine. In August 2023, NSF
announced 16 finalists for the inaugural set of NSF Engines awards,
which are anticipated by the end of the year and will provide each NSF
Engine with up to $160 million over up to 10 years.
Support Wireless Innovation and Security
- This week, the Department of Commerce announced its
first round of grants from its $1.5 billion Public
Wireless Supply Chain Innovation Fund to support the development
of open and interoperable wireless networks.
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