One year after the CHIPS and Science Act was signed by President Joe Biden, no funds assigned in the $52.7 billion package have been issued yet, and the semiconductor industry is yet to receive its anticipated windfall. Companies like Integra, Intel, and SkyWater have made clear that the funds are necessary for them to be able to expand or develop manufacturing operations in the United States.
One year after President Joe Biden's signing of the CHIPS and Science Act, the U.S. semiconductor industry is still expecting the financial rewards. Secretary of Commerce Gina Raimondo noted, "We'll begin granting the funds later this year. It's vital that we move rapidly but also carefully in this process." The $52.7 billion legislation seeks to secure the supply chain of semiconductor production in the nation, while reducing dependence on foreign countries deemed as a security risk by the United States. Federal subsidies are meant to make up for the cost of constructing these domestic manufacturing sites, but none has been allocated as of yet. Raimondo said they have been contacted by "over 460 companies from around the world" with proposals; an increase from the "nearly 400" interested parties reported earlier.
The White House has stated that $231 billion has been announced in private sector semiconductor investments in the United States. However, many of these projects are dependent on receiving federal funding. Integra Technologies, which offers semiconductor packaging and other services, is planning on constructing a 1-million-square-foot facility in the Wichita, Kansas area, subject to receiving federal funding. The CEO, Brett Robinson, stated that the small profit margins of the sector make the project unfeasible without government support. The project is estimated to create nearly 2000 high-paying jobs that will not require additional funding once it opens. SkyWater Technology, a foundry, is likewise strategizing to hire 700 new employees, but are unable to begin construction until they acquire federal funding. Meanwhile, companies like Intel, Taiwan Semiconductor Manufacturing Company and Wolfspeed have already started hiring and constructing projects without CHIPS Act funding. Despite the promises of millions in investment dollars, the Department of Commerce has cautioned that not all applicants should expect to receive aid.
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