U.S. Government Unveils $11 Billion Semiconductor Research and Development Plan


The White House revealed its ambitious initiative on Friday, announcing a substantial $11 billion allocation towards semiconductor-related research and development. This move accompanies the launch of the National Semiconductor Technology Center, backed by a $5 billion investment.


This development follows the passage of the Chips and Science Act by Congress in August 2022, which earmarked $52.7 billion for the semiconductor industry. Notable provisions of the Act include $39 billion in subsidies for semiconductor production, $11 billion for research and development, and the introduction of a 25% investment tax credit aimed at fostering chip plant construction, estimated at a value of $24 billion.


At a White House event, U.S. Commerce Secretary Gina Raimondo underscored the collaborative nature of the National Semiconductor Technology Center, emphasizing its role as a platform for government, industry stakeholders, academics, and venture capitalists to collaborate on advancing semiconductor technology.


Energy Secretary Jennifer Granholm emphasized the strategic significance of the initiative, framing it as part of a broader industrial strategy aimed at safeguarding American jobs and competitiveness. Granholm stressed the importance of research and development in bolstering national strength, asserting, "A nation that does not do R&D is a weak nation."


The establishment of the National Semiconductor Technology Center will be complemented by the creation of the National Advanced Packaging Manufacturing Program and new Manufacturing USA institutes focused on semiconductors, as mandated by the 2022 law.


Looking ahead, Commerce Secretary Raimondo disclosed plans for major awards to fund chip manufacturing within the next two months. While the companies involved were not disclosed, Raimondo hinted at ongoing negotiations with key industry players such as TSMC, Samsung, and Intel. These awards are intended to facilitate chip production and bolster related supply chain investments, supporting the construction of cutting-edge semiconductor facilities in the United States.


Raimondo emphasized the groundbreaking nature of these investments, highlighting their unprecedented scale and complexity. "These are new-generation investments -- size, scale complexity that's never been done before in this country," she remarked, signaling a significant leap forward in U.S. semiconductor capabilities.

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