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The Biden administration will invest $5 billion of new funding in semiconductor manufacturing and research, according to UPI.

What’s going on: “The federal funds, provided through the [2022] CHIPS and Science Act, aim to establish the United States as a world leader in semiconductor manufacturing and technological innovation, while enhancing national security and creating jobs.”

• That NAM-championed legislation earmarked $39 billion for chip production in the U.S.
• Much of the just-announced funds will go toward the creation of the National Semiconductor Technology Center at the National Institute of Standards and Technology, “which is working to boost U.S. innovation by supporting design, prototyping and testing programs, while also helping to build a skilled and diverse workforce.”
• A portion of the money will go toward R&D efforts in sectors that support semiconductors to cut manufacturing costs and boost chip quality and performance.

The background: In February 2023, the administration began accepting applications for CHIPS Act funding of large-scale semiconductor projects, including the construction, expansion and modernization of related facilities and materials.

• Last June, it announced the start of the second phase of funding.

New workforce hub: “The NSTC will support the creation of the Workforce Center of Excellence, which aims to connect job seekers with numerous new high-tech positions in the semiconductor industry.”

Why it’s important: “Biden said the CHIPS legislation was serving to improve America’s standing on the world stage as the United States was still struggling to regain footing in semiconductors after investment in tech research and development fell to less than 1% of GDP since the mid-1960s.”