Wednesday, April 24, 2024 10:22:27 PM
Read and weep over the fact that Trump did nothing like it, 💩 for brains.
The CHIPS and Science Act's Ongoing Impact
IP LIFECYCLE MANAGEMENT
By Simon Butler
https://www.perforce.com/blog/mdx/chips-and-science-act-semiconductor-manufacturing
More than a year after the CHIPS and Science Act was signed into law – granting $52 billion in subsidies for chip manufacturers to build fabrication plants in the U.S. – it has had a notable impact on semiconductor jobs, education, and overall outlook.
Though the act spurred dramatic and immediate investment in U.S. semiconductor manufacturing, some of the key gains are just starting to be seen. For example, leading semiconductor manufacturers have announced their plans to build new fabs in 2024 and 2025 and the much-anticipated location of The National Semiconductor Technology Center is still being determined. On the local level, states are beginning to match national funding with their own increased budgets and legislation.
Most recently, the Biden administration built upon the Chips and Science Act by passing the The Building Chips in America Act, or the Kelly Amendment, a bipartisan law that speeds up the review process for semiconductor research and development projects.
This article explains The CHIPS and Science Act, The Building Chips in America Act, and the progress in U.S. semiconductor manufacturing since these crucial achievements. We will also share why investment in manufacturing must be met with an equal investment in IP security.
The CHIPS and Science Act of 2022 provided $52 billion in subsidies for chip manufacturers to build fabrication plants in the U.S. For reference, currently only 12% of all semiconductor chips are made in the U.S. This represents a 25% decrease since 1990. During this time, as U.S. semiconductor manufacturing fell, global competition increased. Manufacturing in East Asia, in particular, rose to make up 75% of semiconductor production.
This act comes amidst a global economic downturn, with lawmakers hoping that American-made chips will solve security and supply chain issues. In short, this is something the U.S. needs to reassert its historical influence on semiconductor manufacturing and ensure the future of the industry.
Tech Hubs Program
One key part of the CHIPS and Science Act is its Tech Hubs program. The program began accepting applications in summer 2023, and will notify applicants and begin granting funds later in the year.
The program seeks to diversify the U.S. semiconductor sector by building new fabs in regions outside of traditional tech hubs. To meet this goal, the U.S. Economic Development Administration will give $15 million in strategy development grants to 20 new "tech hubs" across the country.
This comes in response to highly concentrated semiconductor jobs and talent. Currently, four of the 10 largest semiconductor manufacturers are headquartered in California, while three are in Texas. Geographic diversity will be essential as the semiconductor industry faces an ongoing workforce shortage.
The National Semiconductor Technology Center
Another stand-out element of the CHIPS and Science Act is The National Semiconductor Technology Center. This space will bring together semiconductor experts in multiple disciplines, including research, design, engineering, and manufacturing.
Another goal in opening this center is facilitating more collaboration and conversation between industry leaders, academics, and those in both state and local government. The center will sponsor research grants and be a space to test emerging semiconductor technology.
As of fall 2023, the site of The National Semiconductor Technology Center has not yet been determined. Recently, Illinois Gov. JB Pritzker lobbied the White House, proposing the Chicago area as a potential site.
The Building Chips in America Act of 2023
The Building Chips in America Act, passed in summer 2023, builds upon the success of the CHIPS and Science Act. Put simply, the amendment will streamline the process that manufacturing and development projects have to go through in order to gain approval.
The act contains several core components that make conducting environmental reviews easier. These new guidelines come as the industry responds to the larger call to enhance sustainability.
Previously, long review processes made opening a semiconductor fab – which is already a multi-year effort – more tedious. The Building Chips in America Act provides a three-part solution:
Designating the Department of Commerce as the lead federal agency to carry out National Environmental Protection Act (NEPA) reviews.
Omitting some projects from the NEPA review process, including semiconductor initiatives that expand existing fab sites and projects that already have state and federal permits.
Allowing the Secretary of Commerce to partner with state governments to complete NEPA reviews.
Impact of the CHIPS and Science Act
Though it will take decades to fully reflect on and grasp the impact of the CHIPS and Science Act, some improvement is already observable a year after its passage. Overall, the act has driven $166 billion in semiconductor investments and job growth. In the years ahead, those in the industry can look forward to more fabs, a push toward semiconductor education at both the community college and university level, and a rise in job openings to reinvigorate and grow the workforce.
New Semiconductor Fabs
There are currently 67 new fabs or fab expansions scheduled to start construction by 2025, according to figures from SEMI. Here are a few of the largest developments:
Intel will build two new fabs, a combined $20 billion investment, in Chandler, Arizona. They are slated to open in 2024. Intel also recently announced construction of two new fabs in Licking County, Ohio, and stated that the company aims to foster a "Silicon heartland" in the state.
TSMC will build two new fabs, costing $40 billion, in Phoenix, Arizona. They will be operational in 2024 and 2026.
Micron will build a "megafab" in Clay, New York. The multi-phase project is estimated to cost $100 billion over 20 years, but an initial, $20 billion phase will be complete by 2023. Micron will also expand their campus in Boise, Idaho.
GlobalFoundries recently purchased 800 acres to begin building a second chip fab in Malta, New York.
Investments in Semiconductor Education and Job Creation
One of the biggest challenges for the semiconductor industry is a prolonged workforce shortage. According to data from the U.S. Census, only 28% of the semiconductor workforce is under 34 years old. For comparison, 16 to 34 year olds make up 35.3% of the overall American workforce.
Investing in education is a crucial way to reverse this decades-long trend. Recently, semiconductor programs at institutions across the country have flourished, training thousands of graduates to meet increasing industry demand.
Purdue University launched their Semiconductor Degrees Program, which will incorporate courses in chip manufacturing and design, chemical engineering, packaging, and more.
Arizona State University recently added a graduate certificate in Semiconductor Processing to their list of online offerings.
The Ohio State University opened The Center for Advanced Semiconductor Education and Research Program, partnering with 10 Ohio institutions who will use the facility to complete hands-on coursework.
The Grainger College of Engineering at the University of Illinois Urbana-Champaign will allow students to declare a Minor in Semiconductor Engineering beginning in 2024.
Samsung has built a manufacturing apprenticeship program at Austin Community College.
According to the Institute of Electrical and Electronics Engineers, 70% of newly created semiconductor jobs will require a two-year degree, while the other 25% will call for a bachelor's, master's, or doctorate degree.
This growth in semiconductor education will be necessary as the industry prepares to add 115,000 jobs by 2030. As job openings increase, interest seems to be rising, as well. Data from Handshake, a job application platform for college students and young professionals, shows that applications at semiconductor companies increased nearly 80% between 2022 and 2023.
Recent DJT News
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Trump Media Announces Appointment of Semple, Marchal & Cooper, LLP as Auditor • GlobeNewswire Inc. • 05/06/2024 08:15:10 PM
- Trump Media Provides Additional Information to DJT Investors Regarding Recalling Shares • GlobeNewswire Inc. • 04/29/2024 10:00:00 AM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- Trump Media Provides Additional Information To DJT Investors Regarding Short Selling • GlobeNewswire Inc. • 04/23/2024 10:00:44 AM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Truth Social to Launch Streaming Platform • GlobeNewswire Inc. • 04/16/2024 11:24:00 AM
- Ericsson Soars with 66% Net Profit Growth; Live Nation Under Antitrust Scrutiny in US, and More News • IH Market News • 04/16/2024 11:18:19 AM
- Trump Media & Technology Group Files S-1 Resale Registration Statement • GlobeNewswire Inc. • 04/15/2024 01:17:42 PM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Trump Media & Technology Group Files 10-K Report • GlobeNewswire Inc. • 04/01/2024 10:00:00 PM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- Trump Media & Technology Group Stock to Begin Trading Under Ticker Symbol DJT • GlobeNewswire Inc. • 03/26/2024 01:15:00 PM
- Super Micro Computer and Seagate Shares Surge on Analyst Optimism in Pre-Market Trading, and Latest News • IH Market News • 03/26/2024 11:20:49 AM
- Digital World SPAC Shares Jump 18% After DeSantis Drops Out • Dow Jones News • 01/22/2024 03:44:00 PM
- Trump Social-Media SPAC's Shares Jump After SEC Settlement • Dow Jones News • 07/21/2023 11:37:00 AM
- Digital World, the Trump Social-Media SPAC, Charged with Fraud • Dow Jones News • 07/20/2023 10:07:00 PM
- Digital World Acquisition Reaches SEC Settlement Over Alleged Fraud Claims • Dow Jones News • 07/03/2023 10:49:00 PM
FEATURED Cannabix Technologies Launches New Compact Breath Logix Workplace Series and Prepares for Delivery to South Africa • May 7, 2024 8:51 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM