US Secretary of Commerce Gina Raimondo on Monday said that a proposed US$52 billion boost in US government funding for semiconductor production and research could result in seven to 10 new US factories.
Raimondo said at an event outside a Micron Technology Inc chip factory that she anticipated the government funding would generate “US$150 billion-plus” in investment in chip production and research — including contributions from state and federal governments and private-sector firms.
“We just need the federal money ... to unlock private capital,” Raimondo said, adding that “it could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done.”
Photo: Reuters
She said she expected that states would compete for federal funding for chip facilities and the US Department of Commerce would have a transparent process for awarding funding.
A global shortage of semiconductor chips, caused by factors including a rise in demand for electronic devices during the COVID-19 pandemic, has affected automakers and other industries. Automakers including General Motors Co, Ford Motor Co and Toyota Motor Corp have cut production this year due to the shortage.
US Senator Mark Warner, a Democrat, said at Monday’s event that he thought the funds could result in “seven to 10” new fabrication plants.
“This is not going to solve this overnight,” Warner said. “It will take years for the commerce department to make these investments.”
Last week, US Senate Majority Leader Chuck Schumer unveiled revised bipartisan legislation to spend US$52 billion on US semiconductor chip production and research over five years.
Supporters of funding have said that the US had a 37 percent share of semiconductors and microelectronics production in 1990; today just 12 percent of semiconductors are manufactured in the US.
The bill includes US$39 billion in production and research and development incentives, and US$10.5 billion to implement programs, including the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program.
US Senator John Cornyn, a Texas Republican who also took part in the joint event, has filed an amendment to remove prevailing wage provisions from the bill.
He said that he wanted a vote on his amendment, as the wage issue was jeopardizing Republican support.
“I don’t expect this is going to stop our achieving what we want to achieve,” Cornyn said, referring to the wage issue. “It’s important, but I think getting the chips for America act passed is essential.”
He said that China has left the United States no option but to make such investments.
“This is a vulnerability we must fix,” he added.
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