Biden administration announces $5 billion commitment to research and development of computer chips | economy and trade


The Biden administration on Friday announced a $5 billion investment in a newly established public-private consortium aimed at supporting research and development into advanced computer chips.

The National Semiconductor Technology Center is being funded through the CHIPS and Science Act. That 2022 legislation aims to reinvigorate the computer chip sector within the United States through tens of billions of dollars in targeted government aid.

Chips industry stakeholders gathered at the White House complex to discuss how the center should prioritize research and worker training for an industry poised to expand due to government support. The coronavirus pandemic has highlighted the risks to the economy and national security caused by excessive reliance on Taiwan for advanced chips, while the emergence of artificial intelligence is likely to increase demand for new and more innovative chips.

“This is a turning point in the industry,” Commerce Secretary Gina Raimondo told the group. “Not just because we are dangerously dependent on one country for many of our chips, but because AI is going to cause an explosion in demand for chips, sophisticated chips, more energy-efficient chips, cost-effective chips.”

The center will help finance the design and prototyping of new chips, in addition to training workers for the field.

Companies say they need a skilled workforce to take advantage of $39 billion the government is setting aside to finance new and expanded computer chip plants. Raimondo said there will be a “drumbeat” of funding announcements for companies over the next six to 12 weeks.

This sector is likely to grow rapidly in terms of the need for highly specialized workers. Labor Department figures say about 375,000 people are employed in the production of computer chips, with an average income of $82,830.

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