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The Biden administration has set an ambitious new goal for the United States to produce 20% of the world’s most advanced semiconductor chips by the end of this decade.
Achieving this goal, set by Secretary of Commerce Gina Raimondo in a speech Monday morning, would be a dramatic shift for the United States.
The company currently makes 0% of its so-called “advanced logic” chips, which are significantly more powerful than previous generations of semiconductors and have become essential for everything from mobile phones to AI to quantum computing. There is.
“Certainly, this is a big number,” Raimondo said of the 20% goal, speaking at the Center for Strategic and International Studies.
The Biden administration hopes to help the country achieve its ambitious goals with investments secured through 18-month-old legislation called the CHIPS and Science Act.
The bill would authorize the White House to spend $50 billion in taxpayer dollars ($39 billion earmarked specifically for manufacturing) over the next few years to revive U.S. manufacturing. ing.
Raimondo, who oversees the fund, said it would focus on supporting projects that come online this decade, a challenge for some of the most complex efforts that require specialized equipment and supply chains. becomes.
Not all companies are satisfied with what they receive. Raimondo said the 2030 goal means many proposals with longer timelines won’t receive grants. Due to limited funds, some people receive less than half of the amount they requested.
“It’s a tough negotiation. That’s our job,” she said.
Raimondo oversees a team of more than 200 people tasked with enforcing legislation aimed at countering the decline in America’s share of semiconductor manufacturing.
In 1990, the United States produced nearly 40% of the world’s chips, but today less than 10% are made here, according to the White House.
The situation is even worse for the world’s most advanced semiconductors, which are now 100% manufactured overseas, primarily in Taiwan.
So far, three small manufacturing awards have been awarded to BAE Systems (BAESY), Microchip Technology and GlobalFoundries (GFS).
But much of the work to develop these cutting-edge chips will be in the hands of larger companies, which are still waiting for awards to be finalized. Intel (INTC), which is building a new factory in Ohio, is reportedly in talks to get up to $10 billion in government funding.
Taiwan Semiconductor Manufacturing Company (TSMC) is also a potential recipient, and Raimondo suggested on Monday that they too may receive help.
She called the Arizona company’s proposed project “groundbreaking,” praised its investment in the United States, and promised, “We’re going to make it.”
Ben Werschkul is Yahoo Finance’s Washington correspondent.
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