The White House announced a $50 billion investment in the semiconductor industry.

The White House announced a $50 billion investment in the semiconductor industry.

U.S. Secretary of Commerce Gina Raimondo says U.S. semiconductor growth is a matter of national security – Copyright AFP/File YANN COATSALIOU

The Biden administration has unveiled plans to allocate $50 billion to develop the domestic semiconductor industry while countering China.

According to The newspaper “New York TimesThis move by the US Department of Commerce is expected to be the largest attempt by the US government in decades to shape a strategic industry.

The Department of Commerce hopes that by February 2023 it can begin seeking applications for $39 billion in government subsidies for semiconductor chips to build new facilities and expand existing US manufacturing.

strategy released today, describes the initiatives, strategic goals, and constraints that guide the CHIPS for America program:

“Restoring America’s leadership in the semiconductor industry is the key to our future as a world leader,” US Secretary of Commerce Gina Raimondo said in a statement. “CHIPS for Americawill ensure continued U.S. leadership in industries that underpin our national security and economic competitiveness. Under the leadership of President Biden, we are doing something in America again, resurrecting our manufacturing industry after decades of not investing, and making the investments needed to become a global leader in technology and innovation.”

US Department of Commerce

fund, which was approved by Congress was established in July to encourage the production of strategically important semiconductors in the United States and stimulate research and development in next-generation chip technologies.

The fund includes $52.7 billion for semiconductor manufacturing and research and a 25 percent investment tax credit for chip factories, valued at $24 billion. This credit applies to projects whose construction begins after January 1st.

Trade experts called the fund the most significant industrial policy investment the US has made in at least 50 years. This will come at a key moment for the semiconductor industry.

Semiconductors are the brains of modern technology

Semiconductors important component electronic devices enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.

Semiconductors, or integrated circuits or microchips as they are sometimes called, are made from pure elements, usually silicon or germanium, or compounds such as gallium arsenide.

Semiconductor chips have replaced light bulbs, driving machines faster, cheaper, and more efficiently. Advances in design and size have led us to create light and elegant modern phones and smart equipment for various industries.

The one thing that is completely amazing about semiconductors is their importance in almost every aspect of our lives. Take a moment and try to imagine today’s life without semiconductors…;

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