US President Biden Signs Off on the CHIPS and Science Act

[TheLostSwede]

In President Biden's first year in office, the Biden-Harris Administration has implemented an industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. These policies have spurred an historic recovery in manufacturing, adding 642,000 manufacturing jobs since 2021. Companies are investing in America again, bringing good-paying manufacturing jobs back home. The construction of new manufacturing facilities has increased 116 percent over last year.

Today, President Biden will sign into law the bipartisan CHIPS and Science Act of 2022, which will build on this progress, making historic investments that will poise U.S. workers, communities, and businesses to win the race for the 21st century. It will strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the workforce of the future to keep the United States the leader in the industries of tomorrow, including nanotechnology, clean energy, quantum computing, and artificial intelligence. The CHIPs and Science Act makes the smart investments so that American to compete in and win the future.




Spurred by the passage of the CHIPS and Science Act of 2022, this week, companies have announced nearly $50 billion in additional investments in American semiconductor manufacturing, bringing total business investment to nearly $150 billion since President Biden took office:

• Micron is announcing a $40 billion investment in memory chip manufacturing, critical for computers and electronic devices, which will create up to 40,000 new jobs in construction and manufacturing. This investment alone will bring the U.S. market share of memory chip production from less than 2 percent to up to 10 percent over the next decade.
• Qualcomm and GlobalFoundries are announcing a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries' upstate New York facility. Qualcomm, the leading fabless semiconductor company in the world, announced plans to increase semiconductor production in the U.S. by up to 50 percent over the next five years.

The CHIPS and Science Act will boost American semiconductor research, development, and production, ensuring U.S. leadership in the technology that forms the foundation of everything from automobiles to household appliances to defense systems. America invented the semiconductor, but today produces about 10 percent of the world's supply—and none of the most advanced chips. Instead, we rely on East Asia for 75 percent of global production. The CHIPS and Science Act will unlock hundreds of billions more in private sector semiconductor investment across the country, including production essential to national defense and critical sectors.

The law will also ensure the United States maintains and advances its scientific and technological edge. In the mid-1960s, at the peak of the race to the moon, the federal government invested 2 percent of GDP in research and development. By 2020, that number had fallen to less than 1 percent. Economic growth and prosperity over the last 40 years has clustered in a few regions on the coasts, leaving far too many communities behind. The CHIPS and Science Act will ensure the future is made in ALL of America, and unlock opportunities in science and technology for those who have been historically left out.

The Biden-Harris Administration has already taken action to ensure expedient, responsible deployment of CHIPS and Science Act funding:

• Coordinated permitting for high-tech manufacturing. Today, the Administration is announcing the launch of a sector-specific interagency expert working group on permitting and permitting-related project delivery issues for high-tech manufacturing, consistent with the President's Permitting Action Plan announced in May. This interagency working group will build on the interagency CHIPS and Science Act planning to date between the Council on Environmental Quality, Environmental Protection Agency, and the Department of Commerce. It will help to ensure collaboration and coordination across federal agencies, the private sector, and with state and local governments to facilitate timely and effective reviews of all federally-funded projects. The working group will also serve as a clearinghouse for best practices with respect to permitting and other project delivery issues to support implementation of projects funded by the bill.

• President's Council of Advisors on Science and Technology (PCAST) releases new recommendations on semiconductors R&D. Today, PCAST sent a letter to the President with their recommendations for implementing the CHIPS and Science Act, including: forming a national microelectronics training network for semiconductor workforce development across academic institutions, including minority-serving institutions and community colleges; fostering innovation by reducing the barriers of entry to startups; recommending the development of a "chiplet platform" to enable startups and researchers to more rapidly innovate at lower cost; and setting a national semiconductor research agenda with fundamental research and grand challenges to, for example, build the first "zettascale supercomputer" which would be 1,000 times faster than the fastest supercomputer available today. The full PCAST semiconductors report will be released this fall.

The CHIPS and Science Act will:

• Bolster U.S. leadership in semiconductors. The CHIPS and Science Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development. This includes $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in R&D and workforce development,and $500 million to provide for international information communications technology security and semiconductor supply chain activities. It also provides a 25 percent investment tax credit for capital expenses for manufacturing of semiconductors and related equipment. These incentives will secure domestic supply, create tens of thousands of good-paying, union construction jobs and thousands more high-skilled manufacturing jobs, and catalyze hundreds of billions more in private investment.

The bill requires recipients to demonstrate significant worker and community investments, including opportunities for small businesses and disadvantaged communities, ensuring semiconductor incentives support equitable economic growth and development.

These funds also come with strong guardrails, ensuring that recipients do not build certain facilities in China and other countries of concern, and preventing companies from using taxpayer funds for stock buybacks and shareholder dividends. It will also support good-paying, union construction jobs by requiring Davis-Bacon prevailing wage rates for facilities built with CHIPS funding.

• Promote U.S. innovation in wireless supply chains. The CHIPS and Science Act includes $1.5 billion for promoting and deploying wireless technologies that use open and interoperable radio access networks. This investment will boost U.S. leadership in wireless technologies and their supply chains.
• Advance U.S. global leadership in the technologies of the future. U.S. leadership in new technologies—from artificial intelligence to biotechnology to computing—is critical to both our future economic competitiveness and our national security. Public investments in R&D lay the foundation for the future breakthroughs that over time yield new businesses, new jobs, and more exports.

The CHIPS and Science Act will establish a technology, innovation, and partnerships directorate at the National Science Foundation (NSF) to focus on fields like semiconductors and advanced computing, advanced communications technology, advanced energy technologies, quantum information technologies, and biotechnology. It will strengthen commercialization of research and technology, ensuring that what is invented in America is made in America. The Act will also reauthorize and expand fundamental and use-inspired research at the Department of Energy Office of Science and the National Institute of Standards and Technology to sustain U.S. leadership in the sciences and engineering as the engine for American innovation.

• Catalyze regional economic growth and development. The CHIPS and Science Act authorizes $10 billion to invest in regional innovation and technology hubs across the country, bringing together state and local governments, institutes of higher education, labor unions, businesses, and community-based organizations to create regional partnerships to develop technology, innovation, and manufacturing sectors.

These hubs will create jobs, spur regional economic development, and position communities throughout the country to lead in high-growth, high-wage sectors such as artificial intelligence, advanced manufacturing, and clean energy technology. It also authorizes a $1 billion RECOMPETE pilot program at the Department of Commerce's Economic Development Administration (EDA) to alleviate persistent economic distress and support long-term comprehensive economic development and job creation in the most distressed communities.

• Provide STEM opportunities to more of America to participate in good-paying skilled jobs. Science, technology, engineering, and mathematics (STEM) education and workforce development activities are critical to developing skills needed for taking on the highly-skilled jobs of the emerging industries built on technologies of the future. To ensure more people from all backgrounds and all regions and communities around the country, especially people from marginalized, under-served, and under-resourced communities, can benefit from and participate in STEM education and training opportunities, the CHIPS and Science Act authorizes new and expanded investments in STEM education and training from K-12 to community college, undergraduate and graduate education.

• Drive opportunity and equity for all of America in STEM and innovation. The legislation authorizes investments to expand the geographic and institutional diversity of research institutions and the students and researchers they serve, including new initiatives to support Historically Black Colleges and Universities (HBCUs) and other minority-serving institutions, and other academic institutions providing opportunities to historically-underserved students and communities, primarily through the National Science Foundation (NSF). The CHIPS and Science Act also broadens the geographic diversity of research and innovation funding to leverage the talent and ideas found all across America. The legislation also gives agencies and institutions the mission and the tools to combat sexual and gender-based harassment in the sciences, a demonstrated barrier to participation in STEM for too many Americans. Through these investments and initiatives, the bill would support learners, educators, and researchers at minority-serving and emerging research institutions and in rural communities, as well as broaden participation to include people of all backgrounds and experiences, driving the creation of a STEM ecosystem that looks like and benefits all of America.

View at TechPowerUp Main Site | Source

 

[HM_Actua1]

neva gonna happen

 

[mazzilla]

From what I have read, it takes around 3-5 years to design, develop and build a chip fab. Then there's the chip etchers themselves which seems to be built by only one company in the world and it has a backlog, so maybe add another year to that. That will take the US from today to about 2026-2028 before a single chip is made and out the door. In the meantime there's an election in 2024 and that might change things either way. Oh, and the economy. And finding skilled people to design the chips and work in the fabs.

With that all in the background, the other chip manufacturers will have moved on. They should have done something like this years ago but for "reasons" (money, probably) they didn't. Now they are playing catch-up and it's going to be a long and expensive process.

 

[TheLostSwede]

From what I have read, it takes around 3-5 years to design, develop and build a chip fab.

If everything goes exactly to plan, yes. Also depends on a lot of things, like government permits etc.

Then there's the chip etchers themselves which seems to be built by only one company in the world and it has a backlog, so maybe add another year to that.

Not quite true, but yes, if you want to make cutting edge chips, you need gear from ASML today and those are ordered years in advance anyhow, so they don't add any extra time to the build time of the fab, but it takes up to a year to install all the equipment and doing the fine tuning, as each and every fab, is a custom job. So once the building is there with all the clean rooms in order and so on, it can take another year before sample production can start.

That will take the US from today to about 2026-2028 before a single chip is made and out the door. In the meantime there's an election in 2024 and that might change things either way. Oh, and the economy. And finding skilled people to design the chips and work in the fabs.

Pretty much, yes.

With that all in the background, the other chip manufacturers will have moved on. They should have done something like this years ago but for "reasons" (money, probably) they didn't. Now they are playing catch-up and it's going to be a long and expensive process.

If it's Intel we're talking about here, they obviously have fabs that are being continually upgraded, so it's not as if they're going to be sitting on their arse waiting for these new fabs to be built. They're just in the final stages of getting their new addition in Ireland up and running and that's for the Intel 4 node.

Intel Ireland Fab 34 Achieves Development Milestone, Facility to Drive Intel 4 Node

Intel Ireland last week chalked up a milestone in its $7 billion Fab 34 construction project: A team rolled in the new plant's first huge chipmaking tool. The machine, a lithography resist track, arrived by truck at Intel's Leixlip, Ireland, plant after a flight across the Atlantic Ocean from an...

www.techpowerup.com

 

[watzupken]

From what I have read, it takes around 3-5 years to design, develop and build a chip fab. Then there's the chip etchers themselves which seems to be built by only one company in the world and it has a backlog, so maybe add another year to that. That will take the US from today to about 2026-2028 before a single chip is made and out the door. In the meantime there's an election in 2024 and that might change things either way. Oh, and the economy. And finding skilled people to design the chips and work in the fabs.

With that all in the background, the other chip manufacturers will have moved on. They should have done something like this years ago but for "reasons" (money, probably) they didn't. Now they are playing catch-up and it's going to be a long and expensive process.

I agree. The reality is that building of fabs is the easiest part. While tools and talents can also be worked on in parallel, it will take many years and a lot of recurring investment to make it work. Beyond that, you need a lot of different raw materials for the chip production, which can bottleneck the entire operation if there is insufficient supply. Below is an article I read earlier, and I think this investment is nothing but throwing a stone into the ocean.

Former TSMC Spokeswoman Says $52 Billion CHIPS Act Won't Help U.S. Chip Manufacturing (wccftech.com)

 

[maxfly]

This has all been talked to death at this point. Yup, it's going to take time for foundries to be built. That's kind of the the reasoning behind this, hmm? To start the long slow process of decreased dependency.
Having the specifics of the plan laid out should put much of the whining to rest. Particularly those moaning about buybacks. It seems they knew what they were walking into after all, whodathunk.
They obviously put alot of consideration into this plan despite all of the negativity thrown at it. I look forward to digging into the bits and pieces later on.

 

[Palladium]

Lotsa words to spell "More grifts for the grifter class".

 

[Blaylock]

With the rising tension between China and Taiwan and the seemingly inevitable war that is brewing, this is great news. I wish it had happened years ago but I was also unaware that there was really only one major chip manufacturer in the world.

I'm glad to see any manufacturing jobs returning to the U.S. My hope now is that most of these jobs go to U.S. citizens and are not outsourced like so many other companies are doing. Only time will tell.

 

[fancucker]

There should be prioritization of Intel because of their fab experience, domination of the x86 space and contributions to the American economy home and abroad.

 

[Kn0xxPT]

I'm thinking does ways to "regulate" chip manufactoring... opens ways to lobbies ?

 

[the54thvoid]

Several posts have been removed for violating TPU guidelines on politics. I appreciate it was generally well-mannered but it was still politics. Feel free to discuss the merits of the US encouraging domestic chip production.

 

[Fatalfury]

i wonder if they will use "Migrants" or special labourers for 'cheap labour'.
Need lots of headcount and also.. its a super stressful job.

 

[Blaylock]

Several posts have been removed for violating TPU guidelines on politics. I appreciate it was generally well-mannered but it was still politics. Feel free to discuss the merits of the US encouraging domestic chip production.

Thank you for keeping it clean.

 

[robal]

Although it pains me to say it, I think Taiwan's days are numbered.
CHIPS is good news. Even if it's not enough and it will be hard, it's a step in right direction. We'll be very very deep in **** if we don't have more fabs outside Taiwan in near future.

 

[Ravenas]

Considering the situation in Taiwan, this is a great bipartisan bill. Some may say overdue, however, it's best not to subsidize corporations until it's absolutely needed.

 

[Mistral]

It's good that they are trying to get more local production, I just wish the bill was a bit more focused. It'll be qurious to see how long it takes to actually set some fabs running full steam with that kind of backing. Still, it was sad to watch the signing ceremony and se the guy shake Schumer's hand and then a second later forget that he did it... Watching him raise it again and stand confused was mildly depressing. At least hopefully something good comes for this, and hope Taiwan somehow makes it through as well.

 

[onemanhitsquad]

hahaha...printing money for a pipe dream

 

[FordGT90Concept]

The main incentive behind this is to secure chip supply for military equipment. I just hope it actually nets results in diversifying production.

 

[Minus Infinity]

Meanwhile in Australia we make potato chips, about as high tech as it comes. Stuck in the 1900's.

 

[trsttte]

Am I the only one that thinks that Pat Gelsinger picture with whoever the other guys is super cringy!? God damn talk about bad optics, smiling and laughing their way to the bank getting a massive subsidy after years of only investing in stock buyback programs (Gelsinger wasn't there then, but he'll still rip the benefits now and he's the one showing this demeanor). Maybe I'm exagetering but to me looks bad.

 

[dirtyferret]

Meanwhile in Australia we make potato chips, about as high tech as it comes. Stuck in the 1900's.

Are they good potato chips?