The Biden-Harris Administration has launched another phase to the CHIPS and Science Act, the release of $5 billion for investment in semiconductor R&D including the National Semiconductor Technology Center (NSTC) and the establishment of a public-private consortium for the NSTC.
This R&D funding includes hundreds of millions of dollars into the semiconductor workforce with specific investment in packaging, metrology and a CHIPS Manufacturing USA Institute.
According to the Semiconductor Industry Association (SIA), a trade organization that represents 99% of the U.S. semiconductor industry, the R&D funding will help to reinforce America’s economy, national security and technological leadership. Additionally, it helps in the goal of the CHIPS Act to revitalize semiconductor innovation, production and domestic chip workforce for many years to come.
The R&D centerpiece
The NSTC is billed as the centerpiece of the CHIPS Act’s $11 billion R&D program.
The NSTC will bring together government, industry, labor, customers, suppliers, educational institutions, entrepreneurs and investors. The endeavor aims to accelerate the pace of new innovations to the semiconductor supply chain.
The public-private consortium for the NSTC will lower the barriers to production in chip R&D to address needs in the semiconductor workforce.
SIA said the NSTC is critically important to promote U.S. chip revitalization as established by the CHIPS Act.
“With strategic investments in R&D complementing targeted industry incentives, CHIPS for America will not only bring semiconductor manufacturing back to the U.S. — it will keep it here for good,” said Gina Raimondo, secretary of commerce at the DOC. “As we create opportunities for good-paying jobs, the workforce initiatives, such as the NSTC Workforce Center of Excellence, will help ensure a diverse, skilled, and prepared workforce across the nation.”
About the CHIPS Act
The R&D funding release is part of the CHIPS and Science Act to appropriate about $39 billion to the Department of Commerce in funding to onshore semiconductor manufacturing through an incentives program. This includes $11 billion for chip R&D through four programs:
- NSTC
- National Advanced Packing Manufacturing Program
- CHIPS Metrology Program
- CHIPS Manufacturing USA Institute
Previously, the first incentives were released by the DOC: $35 million to BAE Systems and $162 million to Microchip Technology.
