Biden Administration Races to Secure Semiconductor Investments Before Term Ends
As the Biden administration approaches its final months, efforts to solidify a legacy in semiconductor manufacturing are accelerating. Key funding initiatives under the CHIPS and Science Act aim to bolster domestic production and reduce reliance on foreign chip supplies. Central to this strategy are multi-billion-dollar commitments to establish state-of-the-art manufacturing facilities in the U.S., driven by partnerships with industry leaders such as INTEL, Global Foundries, Taiwan Semiconductor Manufacturing Company (TSMC) and Wolfspeed.
TSMC has secured up to $6.6 billion in federal incentives to build three advanced chip plants in Arizona, part of a $65 billion private investment. These facilities, slated to produce cutting-edge chips for AI, 5G/6G technologies, and autonomous vehicles, are critical to enhancing U.S. technological competitiveness and addressing national security concerns. The first plant is expected to open in 2025, representing a significant milestone in reshoring semiconductor production.
In parallel, Wolfspeed, a leader in silicon carbide technology, has proposed a $750 million investment supported by CHIPS funding to build the world’s largest silicon carbide wafer facility. This project will help power electric vehicles and renewable energy systems while creating thousands of jobs in North Carolina and New York.
These moves reflect the administration’s urgency to finalize key industrial policy initiatives before leadership transitions in January 2025. Critics, including incoming Republican lawmakers, have expressed concerns about the efficiency and oversight of CHIPS funding, setting the stage for potential political debates over the future of these investments.
Intel has also secured substantial funding under the CHIPS and Science Act to support its efforts in boosting domestic semiconductor manufacturing. The act, designed to strengthen U.S. competitiveness in the global chip market, has allocated $30+ billion overall to revitalize the industry. Intel is using their portion of funds to build and expand chip fabrication plants, including a massive facility in Ohio, expected to cost $20 billion. This project is part of Intel’s broader strategy to establish the U.S. as a leader in advanced semiconductor technologies.
The funding aims to enhance supply chain resilience and meet growing demand for chips used in AI, electric vehicles, and 5G applications. It also helps Intel compete with global manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC), AMD, and Samsung. This initiative aligns with the Biden administration’s goal to reduce reliance on foreign chip suppliers and secure critical technologies domestically.
The CHIPS Act funding also supports workforce development, creating thousands of jobs and training programs for skilled workers in semiconductor production. This focus on infrastructure and innovation highlights Intel’s key role in shaping the future of the U.S. semiconductor industry.
For now, the Biden administration emphasizes that these projects will create tens of thousands of jobs, strengthen supply chain resilience, and secure a leadership position for the U.S. in semiconductor technology.
Find out more about the CHIPS Act Here-
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