ICYMI: Secretary Raimondo Delivers Update on CHIPS and Science Act Implementation, Lays Road Ahead for Supercharging Innovation and Revitalizing American Semiconductor Manufacturing 

ICYMI: Secretary Raimondo Delivers Update on CHIPS and Science Act Implementation, Lays Road Ahead for Supercharging Innovation and Revitalizing American Semiconductor Manufacturing 
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Tue, 02/27/2024 – 13:13

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Tuesday, February 27, 2024

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This week, U.S. Secretary of Commerce Gina Raimondo delivered a major policy address at the Center for Strategic and International Studies (CSIS) on the implementation of President Biden’s CHIPS and Science Act and the leading-edge technology investments by the Department of Commerce to boost innovation and revitalize American semiconductor manufacturing.

President Biden signed the bipartisan CHIPS and Science Act into law to advance U.S. economic and national security, strengthen U.S. supply chains, and create good-paying jobs across the country. Secretary Raimondo’s speech comes as the Biden-Harris Administration continues to roll out the implementation phase of this historic legislation and sets priorities for award recipients to have their facilities operational by the end of the decade to meet the goals of the program.

Watch Secretary Raimondo’s remarks here and read the full transcript here.

In case you missed it, here’s what people across the country are reading: 

THE NEW YORK TIMES: CHIPMAKERS SEEK MORE THAN $70 BILLION IN FEDERAL SUBSIDIES  

Gina Raimondo, the commerce secretary, said new investments would put the U.S. on track to produce roughly 20% of the world’s most advanced logic chips by the end of the decade. Companies that produce the most advanced semiconductors have requested more than $70 billion in federal subsidies, roughly twice the amount of funding that is available, Commerce Secretary Gina Raimondo said on Monday.  

ABC NEWS: TO LEAD ON AI, US NEEDS TO LEAD ON COMPUTER CHIPS, COMMERCE SECRETARY SAYS  

Artificial Intelligence will be the “defining technology of our generation,” when it comes to the future of technology, but specifically the advancement of semiconductors in the United States, Commerce Secretary Gina Raimondo said Monday. “You can’t lead on AI if you don’t believe in making leading-edge chips,” Raimondo said in remarks at the Center for Strategic and International Studies. “And so our work in implementing chips have just got a whole lot more important.” The Commerce Department is tasked with implementing the CHIPS and Science Act — which spends nearly $53 billion to spur research in and development of America’s semiconductor industry. It is intended to address a nearly two-year global chip shortage that stemmed from supply chain issues related to the COVID-19 pandemic.  

CNBC NEWS: COMMERCE SECRETARY RAIMONDO: U.S. SET TO BECOME A MAJOR HUB OF LEADING-EDGE LOGIC CHIP MANUFACTURING  

The Biden administration is aiming to make the U.S. a major manufacturer of state-of-the-art semiconductor chips before 2030 to compete on the global market, increase national security and create more jobs, Commerce Secretary Gina Raimondo said Monday. “Our investments in leading-edge logic chip manufacturing will put this country on track to produce roughly 20% of the world’s leading-edge logic chips by the end of the decade,” Raimondo said during a speech at the Center for Strategic and International Studies. “That’s a big deal,” she added. “Why is that a big deal? Because folks, today we’re at zero.” The announcement comes a year after the U.S. Department of Commerce opened funding applications for the 2022 CHIPS and Science Act, including $39 billion in manufacturing incentives, and Raimondo outlined its goals by 2030.  

BLOOMBERG: ADVANCED CHIP FIRMS WANT $70 BILLION FROM US, RAIMONDO SAYS  

Advanced semiconductor companies have requested more than double the amount of available federal funds for projects in the US, Commerce Secretary Gina Raimondo said, referring to a program designed to bring chip manufacturing back to American soil. Leading-edge firms — which include Intel Corp., Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. — are seeking more than $70 billion from the 2022 Chips Act, Raimondo said Monday in remarks at the Center for Strategic and International Studies in Washington. The legislation set aside $39 billion in grants — plus loans and loan guarantees valued at $75 billion — to revitalize US semiconductor manufacturing after decades of production abroad.  

REUTERS: CHIPS COMPANIES WILL BE LUCKY TO GET HALF OF SUBSIDIES SOUGHT, US COMMERCE SECRETARY SAYS  

U.S. Commerce Secretary Gina Raimondo said Monday chips companies seeking government subsidies from a $52.7 billion program are expected get significantly less than they sought. Raimondo said she is pushing chips companies “to do more for less” in order to fund more projects. She said her conversations with chips company CEOs typically include them asking for billions in government assistance, which she says is reasonable. “I tell them you will be lucky to get half of that.” When they come in to finalize a deal, “where they get less than half of what they wanted and they tell me they are not feeling lucky. That’s the reality.” Raimondo said the department is prioritizing projects that will be operational by 2030.  

POLITICO: RAIMONDO: CHIPS AWARDEES MUST COME ONLINE BY 2030  

Commerce Secretary Gina Raimondo said Monday that her department’s CHIPS office will exclude chipmakers from incentive funds if their fabs cannot come online by 2030. “We want to maximize our impact in this decade,” Raimondo said at an event at the Center for Strategic and International Studies. “It’s not responsible to give money to a project that will come online 10 or 12 years from now if it means saying no to excellent projects that could come online this year.” The requirement places new pressure on microchip manufacturers after several of them have announced delays and pushed back their initial timelines. Why it matters: Last year, Raimondo laid out several goals for the CHIPS Act, including establishing at least two new large-scale clusters of fabs in the U.S. for leading-edge logic chips by 2030.  

YAHOO: BIDEN WANTS THE US TO MAKE 20% OF ALL HIGH-END CHIPS BY END OF THE DECADE  

The Biden administration laid out an ambitious new goal for the US: produce 20% of the world’s most advanced semiconductor chips by the end of the decade. Achieving that mark — set by Commerce Secretary Gina Raimondo in a speech Monday morning — would be a dramatic turnabout for the US. It currently makes 0% of the so-called leading edge logic chips that are considerably more powerful than older-generation semiconductors, making them crucial for everything from mobile phones to AI to quantum computing. “That’s a big number, yes,” Raimondo said of the 20% goal while speaking at the Center for Strategic and International Studies.  

AGENCE FRANCE-PRESSE: US CAN HOUSE ‘ENTIRE’ SUPPLY CHAIN FOR ADVANCED CHIPS: COMMERCE DEPT  

US Commerce Secretary Gina Raimondo expressed confidence Monday that the country can house the entire silicon supply chain for making advanced chips, including tech that is key for artificial intelligence. Her comments come as the United States looks to cement its lead in the chip industry — especially for chips needed for the development of AI — both on national security grounds and also in the face of competition with China. Speaking at the Center for Strategic and International Studies think tank in Washington, Raimondo said US manufacturing investments “will put this country on track to produce roughly 20 percent of the world’s leading-edge logic chips by the end of the decade.”  

NIKKEI ASIA: U.S. AIMS TO MAKE 20% OF WORLD’S LEADING-EDGE CHIPS BY 2030: RAIMONDO  

The U.S. will manufacture a fifth of the world’s most advanced logic chips by 2030, backed by a domestic supply chain spanning raw materials to packaging, Commerce Secretary Gina Raimondo announced Monday. Speaking at the Center for Strategic and International Studies think tank here, Raimondo said the U.S. will not be able to lead the world if it depends on a couple of Asian countries for the most advanced chips, especially as artificial intelligence becomes the defining technology of the generation. She explained that the CHIPS and Science Act of 2022, which includes $39 billion in incentives for manufacturing semiconductor devices in the U.S., will help alter the landscape. “We think our investments in leading-edge logic chips, leading-edge logic chip manufacturing, will put this country on track to produce roughly 20% of the world’s leading-edge logic chips by the end of the decade,” she said. “Today we are at zero,” she said. Raimondo also said the Biden administration believes that it will be successful in onshoring production of cost-competitive leading-edge memory chips “at scale” in the U.S. 

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Read the full report from the U.S. Department of Commerce: Read More