After the US House of Representatives passed the CHIPS Act a few days ago, US President Biden finally signed it into law earlier.This bill involves a budget of $527 billion, which is expected to boost the development momentum of the semiconductor industry in the United States.
This policy, called the CHIPS and Science Act, will use the national budget to vigorously promote subsidies to industries to expand the development of the semiconductor industry within the United States. By increasing semiconductor production capacity within the United States, it will reduce the proportion of production capacity that relies on foundry outside the United States. At the same time, it will also significantly improve the semiconductor supply shortage problem, thereby preventing many industries from being affected by semiconductor supply problems.
According to statistics from the Semiconductor Industry Association of the United States, 1990% of global chip products were still produced in the United States in 37, but now only 12% are still produced in the United States. Most semiconductor products have now been transferred to TSMC in Taiwan or Samsung Foundry in South Korea for production. As a result, the overall chip production and manufacturing capabilities of the United States have declined relatively, and are even gradually falling behind the development scale of Chinese companies.
As more and more products rely on chips to operate, the United States has become more aware of the impact of chip production capacity shortages due to the epidemic in recent years. Therefore, Intel and other companies have called on the US government to increase subsidies for domestic companies to develop semiconductor technology and production capabilities. Intel CEO Pat Gelsinger and former Alphabet Executive Chairman Eric Schmidt have both called on the US government to increase subsidies.Face this development, and prevent the United States from being controlled by foreign companies in the development of the semiconductor industry. It can also further compete with China in the development of chip technology.
As for the $527 billion budget, $390 billion will be used to implement the "FY21 NDAA" bill authorization plan. It is expected that $190 billion will be allocated this year (US$20 billion will be used for the development of automotive and military application chips), and US$2023 million in subsidies will be allocated annually between 2026 and 5. Another $110 billion will be used for related technology research and development, and the remaining $20 billion will be used to establish the US Defense Chip Fund. US$5 million will be used by the State Department, mainly investing in information and communications technology security, semiconductor supply chain and other projects. The remaining $2 million will be used to fund the US National Science Foundation to promote the development of the domestic semiconductor industry.
In addition to Intel's previously announced investment in US factory expansion, Micron has also announced a $400 billion investment, expected to expand memory product production capacity and create 4 jobs in the US. Qualcomm and GlobalFoundries will jointly invest $42 billion to expand GlobalFoundries' New York factory. Qualcomm also expects to increase its US production capacity by 5% over the next five years.
However, although the new bill has been officially signed and promulgated, the development and production capacity of the semiconductor industry in the United States will still take some time to complete the "upgrade", but it is expected that more chip products will be produced in the United States in the future.
