In President Biden’s first year in office, the Biden-Harris Administration has implemented an industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. These policies have spurred an historic recovery in manufacturing, adding 642,000 manufacturing jobs since 2021. Companies are investing in America again, bringing good-paying manufacturing jobs back home. The construction of new manufacturing facilities has increased 116 percent over last year.
Today, President Biden will sign into law the bipartisan CHIPS and Science Act of 2022, which will build on this progress, making historic investments that will poise U.S. workers, communities, and businesses to win the race for the 21st century. It will strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the workforce of the future to keep the United States the leader in the industries of tomorrow, including nanotechnology, clean energy, quantum computing, and artificial intelligence. The CHIPS and Science Act makes the smart investments so that Americans can compete in and win the future.
Historic Investments and Job Creation
Spurred by the passage of the CHIPS and Science Act of 2022, this week, companies have announced nearly $50 billion in additional investments in American semiconductor manufacturing, bringing total business investment to nearly $150 billion since President Biden took office:
- Micron is announcing a $40 billion investment in memory chip manufacturing, critical for computers and electronic devices, which will create up to 40,000 new jobs in construction and manufacturing. This investment alone will bring the U.S. market share of memory chip production from less than 2 percent to up to 10 percent over the next decade.
- Qualcomm and GlobalFoundries are announcing a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries’ upstate New York facility. Qualcomm, the leading fabless semiconductor company in the world, announced plans to increase semiconductor production in the U.S. by up to 50 percent over the next five years.
The CHIPS and Science Act will boost American semiconductor research, development, and production, ensuring U.S. leadership in the technology that forms the foundation of everything from automobiles to household appliances to defense systems. The law aims to reduce dependence on East Asia for 75 percent of global production and unlock hundreds of billions more in private sector semiconductor investment across the country.
Strengthening Scientific and Technological Edge
The CHIPS and Science Act will also ensure the United States maintains and advances its scientific and technological edge. By investing in research and development, the Act seeks to reinvigorate America’s commitment to innovation. The law will allocate funds to establish a technology, innovation, and partnerships directorate at the National Science Foundation (NSF), focusing on fields like semiconductors, advanced computing, advanced communications technology, advanced energy technologies, quantum information technologies, and biotechnology.
Furthermore, the CHIPS and Science Act authorizes $10 billion to invest in regional innovation and technology hubs across the country. These hubs will bring together state and local governments, higher education institutions, labor unions, businesses, and community-based organizations to develop technology, innovation, and manufacturing sectors. The goal is to create jobs, spur regional economic development, and position communities throughout the country to lead in high-growth, high-wage sectors such as artificial intelligence, advanced manufacturing, and clean energy technology.
The legislation also emphasizes the importance of STEM education and workforce development, providing new and expanded investments from K-12 to community college, undergraduate, and graduate education. To ensure equity and opportunity for all Americans, the CHIPS and Science Act includes initiatives to support Historically Black Colleges and Universities (HBCUs) and other minority-serving institutions, as well as combat sexual and gender-based harassment in the sciences.
FAQs
Q: How will the CHIPS and Science Act benefit the United States?
A: The CHIPS and Science Act will strengthen American manufacturing, supply chains, and national security, while also investing in research and development, science and technology, and the workforce of the future. It will position the United States as a leader in industries such as nanotechnology, clean energy, quantum computing, and artificial intelligence.
Q: What kind of investments are companies making in American semiconductor manufacturing?
A: Companies have announced nearly $50 billion in additional investments in American semiconductor manufacturing, including Micron’s $40 billion investment in memory chip manufacturing and Qualcomm and GlobalFoundries’ $4.2 billion partnership to manufacture chips. These investments will create thousands of new jobs and increase the U.S. market share of memory chip production.
Q: How will the CHIPS and Science Act strengthen scientific and technological advancements in the United States?
A: The Act will establish a technology, innovation, and partnerships directorate at the National Science Foundation (NSF) to focus on key fields like semiconductors, advanced computing, communications technology, energy technologies, quantum information technologies, and biotechnology. It will also support research and development funding at the Department of Energy Office of Science and the National Institute of Standards and Technology.
Conclusion
The CHIPS and Science Act of 2022 is a significant milestone in transforming American manufacturing and bolstering the economy. With historic investments in semiconductor manufacturing, strengthening of scientific and technological advancements, and promoting regional economic growth and development, the Act aims to position the United States as a global leader in innovation and secure its place in the industries of the future. By investing in research, development, and workforce development, the Act ensures that America remains at the forefront of cutting-edge technologies, creating jobs and opportunities for all Americans. Instant Global News