Under President Biden’s leadership, many policies have been implemented to promote domestic manufacturing, resulting in a significant increase of 642,000 manufacturing jobs since 2021.
This positive trend has encouraged companies to reinvest in the United States, which has led to an exceptional 116% surge in the construction of new manufacturing facilities compared to the previous year.
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The CHIPS and Science Act
President Biden signed the bipartisan CHIPS and Science Act of 2022 to advance these objectives further. This legislation represents a historic investment that positions American workers, communities, and businesses at the forefront of the 21st-century race.
The most important areas of focus for the Act include enhancing American manufacturing capabilities and supply chains, strengthening national security, and investing in research and development, science and technology, and the workforce.
Priority sectors for innovation and growth include nanotechnology, clean energy, quantum computing, and artificial intelligence, ensuring that Americans can effectively compete and secure a prosperous future.
Why Is The CHIPS and Science Act Important?
The CHIPS and Science Act is vital for several reasons, as it addresses important issues related to domestic manufacturing, technological innovation, national security, and economic competitiveness. Here are the main reasons why the Act is important:
- Strengthening Domestic Semiconductor Manufacturing. The Act focuses on enhancing American semiconductor manufacturing capabilities, reducing reliance on foreign suppliers, and boosting domestic production of semiconductors. By motivating companies to invest in U.S.-based manufacturing facilities, the Act helps create jobs, drive economic growth, and improve supply chain resilience.
- Promoting Technological Innovation. The Act prioritizes investment in research and development across various sectors, such as nanotechnology, clean energy, quantum computing, and artificial intelligence. By supporting advancements in these cutting-edge technologies, the Act helps position the U.S. as a global leader in innovation and maintains its competitiveness in vital industries.
- Enhancing National Security. Semiconductor technology plays a critical role in national security, defense systems, and critical infrastructure. By strengthening American semiconductor manufacturing and reducing reliance on foreign sources, the Act aims to enhance national security by ensuring a secure and independent supply of semiconductors for defense and intelligence applications.
- Creating Jobs and Economic Opportunities. The investments and initiatives under the CHIPS and Science Act can potentially create thousands of new jobs in semiconductor manufacturing, construction, research, and related industries. By stimulating growth in these sectors, the Act helps drive economic prosperity and regional development.
- Countering Global Competition. The Act is addresses the challenges posed by foreign competitors, especially in the semiconductor industry. By boosting U.S. semiconductor production, promoting innovation, and securing the supply chain, the Act aims to counter China’s dominance in the industry and maintain America’s technological leadership on the global stage.
Significant Investments in American Semiconductor Manufacturing
The passage of the CHIPS and Science Act has already yielded promising results, with companies announcing approximately $50 billion in additional investments in American semiconductor manufacturing.
For example, Micron has committed to investing $40 billion in memory chip manufacturing, a crucial component for producing computers and electronic devices. This investment alone is forecasted to create up to 40,000 new jobs in construction and manufacturing while increasing the U.S. market share in memory chip production.
Strengthening American Semiconductor Manufacturing Partnerships
Another significant partnership has formed between Qualcomm and GlobalFoundries. A $4.2 billion investment will expand GlobalFoundries’ chip manufacturing facility in upstate New York. Through this expansion, Qualcomm aims to increase semiconductor production in the U.S. by up to 50% over the next five years.
The CHIPS and Science Act strongly emphasizes American semiconductor research, development, and production. By ensuring U.S. leadership in semiconductor technology across various industries, from automobiles to defense systems, the Act plans to reduce the nation’s reliance on East Asia, which currently dominates 75% of global production.
Advancing America’s Scientific and Technological Edge
In addition, the Act aims to reinforce and advance America’s scientific and technological edge. Federal investment in research and development has historically declined, leading to uneven economic growth and prosperity. To address this issue, the CHIPS and Science Act prioritizes investment across the entire country, providing equal opportunities for scientific and technological advancements.
To accelerate the deployment of CHIPS and Science Act funding, the Biden-Harris Administration has established a permitting working group tasked with addressing high-tech manufacturing challenges related to permitting and project delivery. This group facilitates collaboration and coordination among federal agencies, the private sector, and state and local governments.
Plus, the President’s Council of Advisors on Science and Technology (PCAST) has provided recommendations for implementing the Act. These recommendations include establishing a national microelectronics training network, reducing barriers for startups, developing a “chiplet platform” that promotes rapid innovation, and setting a national semiconductor research agenda to achieve transformative breakthroughs.
Objectives of the CHIPS and Science Act
The CHIPS and Science Act, with its provisions and investments, aims to reinforce U.S. leadership in semiconductors, drive innovation in wireless supply chains, promote U.S. global leadership in future technologies, catalyze regional economic growth, and provide STEM opportunities to secure a skilled workforce for emerging industries.
Through these initiatives and investments, the United States focuses on lowering costs, creating jobs, strengthening supply chains, and countering China’s dominance in the semiconductor industry.
