All articles tagged with #chips and science act
The US government, led by Commerce Secretary Howard Lutnick, is in discussions to take a non-voting equity stake in Intel as part of converting Chips and Science Act grants into investments, aiming to boost domestic chip manufacturing and reduce reliance on Taiwan, with potential implications for other chipmakers and US policy on semiconductors.
Texas Instruments plans to invest over $60 billion in U.S. semiconductor plants, including new factories in Sherman, as part of its strategy to boost domestic manufacturing and competitiveness against Chinese rivals, supported by government grants and incentives under the Chips and Science Act.
The Commerce Department confirmed a $6.1 billion grant for Micron Technology to build two chip factories in New York and Idaho, as part of the Biden administration's efforts to distribute funds under the Chips and Science Act. An additional $275 million preliminary grant was announced for expanding a facility in Virginia.
The Biden administration has secured a $6.6 billion grant for Taiwan Semiconductor Manufacturing Co.'s Arizona subsidiary to build three chip factories in Phoenix, with the first opening next year. This investment, part of the 2022 Chips and Science Act, aims to boost U.S. semiconductor manufacturing, create jobs, and enhance national security. TSMC will also receive $5 billion in low-cost loans, while the grant is expected to trigger $65 billion in private investment. The initiative faces potential challenges under the incoming Trump administration, which has criticized chip subsidies.
New York Governor Kathy Hochul had a productive call with President-elect Donald Trump, discussing federal funding for infrastructure projects like the Micron semiconductor plant and the Second Avenue Subway extension. Hochul emphasized the importance of the CHIPS and Science Act, which supports the semiconductor plant, amid concerns about its potential repeal by Republicans. She also highlighted the need for federal support for Manhattan's transit upgrades, including Penn Station, which Trump agreed should be improved.
The US government has granted Intel up to $8.5 billion for chip manufacturing through the CHIPS and Science Act, positioning them as a potential number two or three player in the foundry market, with Taiwan Semi continuing to lead. CFRA Research Senior Equity Analyst Angelo Zino notes that while the grant will help, Intel will need to continue investing heavily in their foundry expansion initiative to compete effectively. CEO Pat Gelsinger's turnaround plan is seen as making the right moves, but investors are looking for more customer wins to drive stock performance.
The Biden administration has announced a $5 billion investment in the National Semiconductor Technology Center to support research and development in advanced computer chips, aiming to reduce the overdependence on Taiwan and meet the increasing demand for innovative chips due to the rise of artificial intelligence. The center will fund chip design, prototyping, and worker training, while also supporting the $39 billion government funding for new chip plants, with a focus on creating a skilled workforce to meet the industry's growing needs.
The Biden administration is set to announce a $5 billion investment in the National Semiconductor Technology Center, a public-private consortium focused on advancing research and development in computer chips. This initiative, funded through the CHIPS and Science Act, aims to revitalize the U.S. computer chip sector by supporting R&D, design, prototyping, and workforce training. The investment is part of a broader effort to bolster the industry, with an additional $39 billion allocated for new and expanded chip plants, as industry leaders and stakeholders prepare to gather at the White House for the announcement.
BAE Systems is set to receive the first grant from the CHIPS and Science Act, a signature law of the Biden administration aimed at revitalizing America's semiconductor sector. The $35 million award will support BAE's US manufacturing of semiconductors for national security efforts, particularly for the Pentagon's F-35 fighter jet program. The announcement highlights the administration's focus on the link between semiconductors and national security. The Biden administration plans to spend approximately $50 billion in total to boost the semiconductor industry. Other chip companies are still awaiting formalization of their awards.
The White House has designated 31 technology hubs across the United States to enhance American competitiveness in the technology sector. These hubs will have the opportunity to compete for grants ranging from $40 million to $75 million each. The move is part of President Joe Biden's efforts to invest in America and boost economic growth. The hubs will focus on various technological areas, including AI, clean energy, and medicine. The designations aim to attract private investment and job creation, particularly in historically underserved communities.
Deputy Secretary of Defense Kathleen Hicks has announced the award of $238 million in funding for the establishment of eight Microelectronics Commons regional innovation hubs. These hubs, funded under President Biden's CHIPS and Science Act, aim to accelerate the development and production of microelectronics in the United States. Over 360 organizations from over 30 states will participate in the program, focusing on critical technology areas such as secure edge computing, 5G/6G, AI hardware, quantum technology, electromagnetic warfare, and commercial leap ahead technologies. The hubs will help mitigate supply chain risks and expedite access to cutting-edge microchips for the military.
One year after the CHIPS and Science Act was signed into law, the Biden-Harris Administration highlights significant progress in bringing semiconductor supply chains back to the United States, supporting innovation, and protecting national security. Companies have announced over $166 billion in investments in semiconductors and electronics, and at least 50 community colleges in 19 states have expanded programs to train American workers for jobs in the semiconductor industry. The Department of Commerce has launched funding opportunities, the Department of State is implementing the International Technology Security and Innovation Fund, and the Department of Defense is collaborating with the Department of Commerce to ensure the manufacturing of semiconductors essential to national security. Additionally, the administration is investing in workforce pipelines, establishing the National Semiconductor Technology Center, and supporting regional economic development and innovation.
Applied Materials will invest up to $4 billion in a new research facility in California for chipmaking, with the goal of designing the next generation of tools for semiconductor manufacturing. The investment is driven by the implementation of the CHIPS and Science Act, which has catalyzed the private sector to step up. Since the beginning of the Biden administration, private companies have announced $470 billion in manufacturing and clean energy investments in the U.S., including over $200 billion in semiconductor manufacturing.
President Joe Biden will visit the Minneapolis area on April 3 as part of his "Investing in America" tour, during which he is expected to discuss his administration's work in passing legislation like the American Rescue Plan, the Inflation Reduction Act, and the CHIPS and Science Act. The location of his appearance has not yet been announced.