Some may have been done “hidden” before US CHIPS law issues, a $280 billion subsidy package aimed at strengthening the country’s semiconductor manufacturing infrastructure. That is, the recent impasse over raising the debt ceiling has already caused some cuts in the Act’s funding allocations, and could lead to even more difficult times for tech funding in the future.
CHIPS method outline the plan Inject $280 billion to boost domestic semiconductor manufacturing capacity. The main purpose of the investment is to cut off U.S. chip supplies in case geopolitical tensions over Taiwan, home to the all-powerful TSMC, escalate. TSMC’s research and manufacturing expertise make it a prime target for absorption.
Fortunately, the $52 billion infusion of direct subsidies to chipmakers (such as Intel) has already been completed, so the initial work to lay the groundwork for US-based foundries can begin. increase. This is the quickest way for the United States to reduce its dependence on Taiwan’s manufacturing capacity.
But of the $280 billion, most of it ($170 billion) requires annual appropriations by Congress. In other words, that allocation depends on whether more money can be borrowed through raising the debt ceiling. So it’s up to Republicans and Democrats to negotiate.
The $170 billion will be distributed to the National Science Foundation and the Department of Energy and is intended to fund workforce development, STEM education, and research and development over the next three years. And the amount of injections planned for this year has already been cut, with the National Science Foundation (NSF) receiving $9.87 billion of the $11.9 billion maximum and the Department of Energy (DoE) receiving 81 of the $8.9 billion maximum. received billions of dollars.
We’ve also seen a shift in trends that have caused technology companies to cut jobs. If companies are cutting labor costs, there is less need to introduce new workers to the site. But in a competitive arena where cutting-edge technology—the ability to mass-produce chips with the highest number of high-performance transistors—provides the most profit, research and development is fundamental. Ask TSMC.
Yes, the first round of funding for a “Made in the US” foundry has been secured. But as Intel, TSMC, AMD, and others involved in semiconductor design and manufacturing know, this field is no 100-meter sprint. It’s an 800-meter tactical race that rivals years of fab construction. Well-oiled semiconductor manufacturing equipment can produce enough wafers without worrying about yield, while adapting design processes and tools so that everything, including supply chain and human resources, is a good fit. While doing so, the day of the opening ceremony is approaching.
Unfortunately, neither Democrats nor Republicans work like semiconductor factories. Their plans are fickle and error prone. It remains to be seen if there will be enough incentive to keep the money flowing to the best places.