President Joe Biden has urged Congress to pass the CHIPS Act, as the US looks to become more semiconductor independent.
The CHIPS Act is a piece of legislation that would provide $52 billion in subsidies to chipmakers that manufacture on US soil. The pandemic shone a spotlight on the risks of being dependent on one country, or one region, for something as important as semiconductors. As the pandemic spread, early lockdowns in China and Asia helped contribute to a shortage the industry is still grappling with. National security concerns have increased in recent years as well, leading to an even bigger push toward semiconductor independence.
The goal of CHIPS Act is to help companies establish the infrastructure and manufacturing facilities needed to competitively manufacture chips in the US. Intel has been a big proponent of the legislation, and CEO Pat Gelsinger was in attendance when Biden addressed Congress during the State of the Union, according to CNET.
“Intel’s CEO, Pat Gelsinger, who is here tonight, told me they are ready to increase their investment from $20 billion to $100 billion. That would be one of the biggest investments in manufacturing in American history,” Biden said. “And all they’re waiting for is for you to pass this bill…Send it to my desk. I’ll sign it.”
Intel has already begun heavily investing in US-based manufacturing, building factories in Ohio and Arizona.