Biden Administration Unveils $11 Billion Semiconductor R&D Initiative to Create More Jobs for Americans

By Jace Dela Cruz

Feb 10, 2024 01:43 AM EST

The Biden administration announced on Friday an $11 billion investment in semiconductor-related research and development and a $5 billion fund to launch the National Semiconductor Technology Center.  

CPU Chip Semiconductor
(Photo : Dan Williams from Pixabay)

Chips and Science Act of the Biden Administration

According to Reuters, this move follows Congress' approval of the landmark Chips and Science Act in August 2022. The law allocates $52.7 billion, with $39 billion of this fund going to semiconductor production subsidies and $11 billion for research and development.

It also introduces a 25% investment tax credit, estimated to be worth $24 billion, for building chip manufacturing facilities. At the heart of this R&D program is the establishment of the National Semiconductor Technology Center, which will spearhead research and prototyping of advanced semiconductor tech.

In a White House event, Commerce Secretary Gina Raimondo said the center is a product of a public-private partnership between the government, industry customers, suppliers, entrepreneurs, venture capitalists, and academics who "come together to innovate, connect, network, solve problems and allow Americans to compete and out compete the world."

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Industrial Strategy of the Biden Administration

Energy Secretary Jennifer Granholm emphasized the significance of the initiative, saying it was part of an "industrial strategy around chips" to avert the loss of jobs overseas and add more jobs for Americans.

The National Semiconductor Technology Center will reportedly have an investment fund to help rising semiconductor firms advance technologies toward commercialization.

Aside from the center, the Chips and Science Act will also pave the way for establishing the National Advanced Packaging Manufacturing Program and new Manufacturing USA institutes dedicated to semiconductors. 

Raimondo announced Monday her office's plans to create several significant awards to fund chip manufacturing and increase production within two months. 

"We're in the process of really complicated, challenging negotiations with these companies... [In the] next six to eight weeks, you will see several more announcements. That's what we're striving for," Raimondo told Reuters but did not identify the companies. 

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