The Biden administration has revealed details of how it plans to invest $50 billion into kickstarting the US semiconductor industry, a month after President Joe Biden signed the CHIPS and Science Act.
Around $28 billion is targeted for domestic production and investments in leading-edge logic and memory chip manufacturing. The department will seek proposals for constructing or expanding manufacturing.
The government is looking to ramp up the production of older chips as well. Approximately $10 billion will go toward building semiconductors for cars, communications tech, medical devices and defense, as well as other critical commercial sectors. On top of that, the Commerce Department says $11 billion of the funding will go into research and development.
Why it matters
Tensions between the United States and China are rising over Taiwan as the US is looking to take matters into its own hands regarding domestic production of chips, which in turn will look to create a raft of new jobs. Trade experts have called the fund the most significant investment in industrial policy that the United States has made in at least 50 years.