Global chip shortage continues to affect industries. Therefore, the US senate wants to increase the national production of semiconductors. For this, they have allocated $52 billion. Although a US senate passed this bill, it will now be brought to the House of Representatives.
People will debate about it and share their views. Finally, the President in the White House will sign this bill.
Biden is concerned about research and development programs. Therefore, he wants to pass this bill as soon as possible. Once this bill is passed, one thing is sure America will spend most of its investment to manufacture next-generation semiconductors. They’ll do this for at least the next 5 years.
More importantly, this bill will identify gaps in the supply chain of US semiconductors and establish a program to mitigate those gaps. In recent years, instead of manufacturing chips in-house, the US imported the chips from China, Taiwan, Japan, and South Korea. The main reason was the decline of manufacturing capacity in the US.
The recent amendment to the Innovation and Competition Act is likely to boost the domestic production of semiconductors. But the main challenge for the US right now is the lack of leading-edge processor technology. But the US is taking measures to mitigate this challenge. A $52 billion investment can help resolve the chip shortage issue, but it will take many years to fill the supply and demand gap.
But this allocated budget will significantly impact the domestic production of semiconductors in the US in the long run. Moreover, this budget can help build foundries and increase manufacturing capacity. It will strengthen the research and development program and deliver leading-edge semiconductor technologies.
$52 billion will be distributed for different tasks, such as growing silicon, building foundries, and establishing testing and packaging units. Therefore, the manufacturing process wouldn’t be as easy as it looks.
Along with mitigating the supply and demand gap for semiconductors, this bill has also addressed many other national objectives, such as the development of artificial intelligence and quantum science.
So, after this step, one thing is confirmed: the US will be the leading manufacturer of semiconductors after 5 to 10 years. More importantly, $52 billion is more than enough to mitigate the supply and demand gap for semiconductors.
