While the Trump administration has tried to block China's access to US chip-making equipment through export controls, the US Chip Act -- the proposal to "create beneficial incentives for producing semiconductors" -- has reinvigorated domestic chipmaking, funding research and development and securing the technology supply chain.
In addition to marketing, the plan allocates at least US$12 billion to the Pentagon’s existing "revival" of electronic products, and also allocates US$5 billion to other federal agencies for semiconductor research and development. The largest sum of $5 billion will be used to fund the IC Packaging and Assembly Research Institute. This effort will also create a $500 million investment fund to support a "domestic advanced microelectronic packaging ecosystem".
U.S. packaging in Florida, USA will provide basic funding for the Department of Defense Industry to protect the microelectronics supply chain using digital twin technology. A non-profit organization called BRIDG in Florida recently received another $7.5 million contract from the Air Force Research Laboratory to collect data on chip design and manufacturing processes
This public-private partnership is to issue a technology license to the Belgian chip R&D center IMEC in order to develop product design kits for silicon chip manufacturers
US Secretary of Commerce Wilbur Ross recently visited BRIDG's factory near Kissimmee, Florida. Ross declared: "Central Florida is critical to the US microelectronics manufacturing supply chain and its defense and aerospace customers," in addition to IMEC, BRIDG’s partners include Lockheed Martin, L3Harris, Tokyo Electronics and Florida
Activity vortexes around chip manufacturing and tightening technology supply chains have appeared in the United States. Most notably, the action included the use of US export controls to prevent China from obtaining advanced US integrated circuit manufacturing equipment. The main targets are the telecommunications giant and Huawei, a 5G leader.
A series of measures recently taken by the US government and Congress have boosted the US chip manufacturing industry, and generally illustrate the strategic importance of silicon technology. James Lewis, director of the Technology Policy Program at the Center for Strategic and International Studies in Washington, said that “semiconductors are a bottleneck” in the increasingly fierce technological war between Beijing and Washington.
The "Chip Act" represents a new front for the United States to revive the weak links in semiconductor manufacturing and supply chains. New coronavirus exposed these weak points. Lewis: "This bill reinvests in this national key project to provide targeted tax incentives for advanced manufacturing in the United States. The organization’s main sponsor, Senator Mark Warner of the Democratic Party of Virginia: "We will fund microelectronics Basic research and emphasize the need for multilateral contacts with our allies to increase transparency and focus on the security and integrity threats facing global supply chains.
Warner added: "This proposal also responds to the US "satisfaction, allowing our competitors to catch up." "His office did not respond to requests for details
Industry organizations welcomed the Senate proposal, which was also proposed by Senator John Cornyn of the Texas Republican Party. Similar bills will be introduced in the House of Representatives this week. Other co-sponsors of the Senate bill include Jim Risch, R-Idaho, Marco Rubio, R-Fla and Kyrsten Sinema, D-Ariz.
The terms of the "Chip Act" include encouraging investment in domestic integrated circuit manufacturing, especially by providing a 40% investment tax credit by 2024. This subsidy will be phased out in 2027.
At the same time, the packaging plan will also promote the development of standards and workforce training
Industry groups supporting the legislation note that they have been advocating federal tax credits "to help level the playing field," a reference to the Chinese government's efforts to promote rapid development of the domestic chip industry.
"Other countries have strong incentives, and the lack of incentives from the FEDERAL government in the United States is a key factor in pushing semiconductor manufacturing plants overseas," said SEMI, a semiconductor industry group supporting the Senate chip legislation.
"As global competitors invest heavily and attract advanced semiconductor manufacturers, the United States must be involved to make our country more competitive in producing this strategically important technology," said SIA President and CEO John Neuffer.
US 37 billion US dollars solid semiconductor
The U.S. semiconductor industry is stepping up lobbying the U.S. government and Congress to increase subsidies and spending on semiconductors, the Wall Street Journal reported.The $37bn proposal from the Semiconductor Industry Association includes subsidies for a new chip plant, aid for states seeking to attract semiconductor investment and increased funding for research and development.
A State Department spokesman echoed the support, saying the department was "working closely with Congress and industry to ensure that the future of the semiconductor industry remains in US hands".
China's share of global chip production is expected to nearly double to about 28 percent by 2030, according to SIA estimates, though that includes chip production by foreign companies based in China.Some Of the world's biggest chipmakers, such as Intel and Grechip, are based in the United States, but foreign subsidies have prompted them to shift production to Asia, Israel and Ireland, so only 12% of their chips are made in the United States
SIA's recommendations include $5 billion in federal funding for a new semiconductor plant that would be funded and operated in partnership with the private sector.In a letter to Defense Department officials, Intel CHIEF Executive Bob Swan proposed in April that Intel work with the Pentagon to build and operate the plant.Intel declined to comment.
An additional $15 billion could be earmarked for block grants to states to provide incentives for new semiconductor manufacturing facilities.According to the SIA draft proposal, the remaining $17 billion could supplement federal research funding, with $5 billion for basic research, $7 billion for applied research and $5 billion for a new technology center.
SIA President and CHIEF executive John Neuffer said: "The scale of our planned spending is significant, but the cost to our economy, our national security and our leadership in key technology areas of the future would have been much higher had we not acted."
SIA believes that the United States has come to this day through cooperation and collaboration when its leadership in semiconductor technology has been challenged in the past.America's industrial leadership now faces a similar challenge that government, academia and industry must once again work together to overcome.The obstacles we face today are different from those of the past, so this moment requires strategic thinking and new solutions to achieve our Shared goal of continuing America's semiconductor leadership.
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