The CHIPS and Science Act was proposed by US legislators several years ago with the goal of significantly boosting domestic chip production through the construction of new fabs. While the objective of the Act may have been imprecise, the government will soon start accepting applications for semiconductor projects.
In a recent announcement, Commerce Secretary Gina Raimondo outlined the ambitious goals that the CHIPS and Science initiative has set for the country.
The Biden administration has set an ambitious goal of developing and producing the world’s most advanced chips within the United States by 2030.
To achieve this objective, the US government plans to create at least two large-scale clusters of state-of-the-art logic fabrication plants. These clusters will be capable of bringing the industry’s most sophisticated process technologies to America, and they will be supported by a robust supplier ecosystem and specialized infrastructure to carry out research and development activities.
The government’s vision is for these clusters to serve as the foundation of a thriving semiconductor industry within the US, capable of producing cutting-edge chips and driving innovation for years to come.
The US government is expecting chip manufacturers to build advanced chip packaging facilities with high-volume capabilities in the country. This objective is considered achievable since major players like Intel, TSMC, and Samsung Foundry are already constructing advanced chip fabrication plants within the US. Intel, in particular, is building a new campus in Ohio that will house advanced fabs and packaging facilities. Although TSMC plans to keep its most sophisticated nodes in Taiwan, its Arizona facility is rumored to include advanced packaging capabilities and may eventually produce chips on cutting-edge nodes. Similarly, Samsung Foundry’s Texas fabrication plant may follow suit by producing more advanced chips in the US.
Overall, the vision is to establish a thriving semiconductor industry in the country capable of producing cutting-edge chips and driving innovation.
The government is targeting the production of advanced memory chips at a competitive cost, and Micron is confident it can meet this objective.
To this end, Micron plans to build two large memory fabrication plants in the US, one in Idaho and the other in Ohio, by the end of the decade. It aligns with the government’s desire to establish the world’s most advanced logic and packaging facilities and advanced memory chip production capabilities.
Raimondo conveyed her aspiration for the US to be the sole country where every firm capable of producing cutting-edge chips would have a significant presence in high-volume manufacturing as well as research and development.
However, she acknowledged that accomplishing this objective would be challenging, but the government remains determined to achieve it.
A sum of $39 billion has been allocated for manufacturing incentives to encourage the production of semiconductors in the United States. Additionally, the country will invest $11 billion to cultivate a robust semiconductor research and development (R&D) ecosystem.
The President of the United States and the CEO of Intel have unveiled plans to create a mega silicon manufacturing site in New Albany, Ohio, which could become the largest of its kind globally.
The initial investment of $20 billion will go towards constructing two facilities that will be used for the research, development, and manufacturing of state-of-the-art computer chips. Dubbed “Silicon Heartland,” this project is reminiscent of Intel’s contribution to establishing Silicon Valley.
Since its inception, the Biden administration has prioritized strengthening the country’s capabilities for semiconductor manufacturing and advanced packaging, leading to a 100-day review of national qualifications. The announcement of the New Albany site is a significant step forward in this endeavor.
However, developing a strategic vision for a semiconductor “ecosystem” that can foster critical national capabilities is still needed. It will require the government and private sector collaboration to establish a plan for nurturing the industry’s growth.
Intel is ranked third behind Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Foundry in the semiconductor industry. However, Intel hopes to regain its position as a market leader with the help of increased demand and subsidies from the CHIPS Act. To expand its business, Intel plans to enter the chip foundry industry and manufacture processors for other companies.
Al Thompson, who leads Intel’s US government relations, emphasized the significance of the United States not being fully dependent on other nations for semiconductors. Since the US played a significant role in creating the semiconductor industry and Silicon Valley, it is crucial to maintain some level of independence and avoid dependence on other nations for such a critical component of modern technology.