Chips’ Shortfall: Biden Seeking $37 Billion in Funding

- Advertisement -
- Advertisement -

The shortfall of semiconductors has resulted in several automakers halting production. The new law (CHIPS for America Act) calls for incentives for domestic semiconductor manufacturing and investments in chip research

USA’s recently elected President Joe Biden is seeking $37 billion in funding to rescue the ailing chip manufacturing industry in the United States. A report by Reuters noted that the president of America has also signed an executive order meant to address the global chip shortage. This shortage, as per the report, has alarmed the White House as well as America’s Congress.

“I’m directing senior officials in my administration to work with industrial leaders to identify solutions to the semiconductor shortfall,” Biden said last Wednesday.

- Advertisement -

He added,“Congress has authorized a bill but they need … $37 billion to make sure that we have this capacity. I’ll push for that as well.”

“We welcome the administration’s push to expand semiconductor manufacturing capacity in the US to meet increasing demand from the auto industry and other areas of the economy,” read a social media post by Tyson Tuttle, CEO, Silicon Labs.

Semiconductor manufacturing capacity in the U.S

It is to be noted here that the share of global semiconductor manufacturing capacity in the U.S. has decreased from 37 per cent in 1990 to 12 per cent today (Semiconductor Industry Association Report). U.S. semiconductor companies, on the other hand, account for 47 percent of global chip sales. This decline,as per the report, is largely due to substantial subsidies offered by the governments of USA’s global competitors, which have placed the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or “fabs.”

Additionally, federal investment in semiconductor research has been flat as a share of GDP, while other governments have invested substantially in research initiatives to strengthen their own semiconductor capabilities. The new law (CHIPS for America Act) calls for incentives for domestic semiconductor manufacturing and investments in chip research, but funding for these provisions must come through congressional appropriations.

“We welcome today’s executive order and stand ready to work with the Biden administration to ensure the strength and resilience of America’s semiconductor supply chains. As part of this effort, we urge the president and Congress to invest ambitiously in domestic chip manufacturing and research. Doing so will ensure more of the chips our country needs are produced on U.S. shores, while also promoting sustained U.S. leadership in the technology at the heart of America’s economic strength and job creation, national security, and critical infrastructure,” noted Bob Bruggeworth, president, CEO & director of Qorvo and 2021 SIA board chair.

Ajit Maocha, CEO and president, noted, “We thank President Biden and bipartisan congressional leaders for their support of incentives for U.S. semiconductor manufacturing and research. Enacting an investment tax credit and funding the programs authorized last year will help build needed semiconductor manufacturing capacity in the U.S. and reverse America’s declining share of global chip production. We look forward to working with the Biden administration and Congress on these and other policies to strengthen the semiconductor manufacturing supply chain that is the lifeblood of technology innovation driving countless societal and economic benefits worldwide.”

Also Read

Renault And Stellantis Cut Some Production Due To Chip Shortage: Report

Shortage Of Auto Chips To Impact Global Auto Production Into Third Quarter, Says IHS: Report

Ford’s Production In India To Be Impacted By Semiconductor Shortage

Daimler To Cut Production Over Chip Shortage: Report

 

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Ascend Performance Materials: Pioneering Innovation in the Electronics Sector

0
Bridging material advancements in plastics and technological progress, Ascend leads with customised solutions for a safer, reliable and greener tomorrow. Q. How would you explain...

DigiKey Expands Portfolio With 3PEAK

0
This collaboration adds amplifiers, interface components, data converters, and more, catering to industries such as communication, industrial, medical, and automotive.  In a strategic move aimed...

“Automotive And Medical Will Adopt More Printed Electronics”

0
The automotive industry is experiencing a revolution. But is this revolution limited to the evolution of powertrains? Salil Musale, MD, Naxona (Astarc Group), chats...

Buzz

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Important Sectors

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

IESA & SEMI Collaborate To Advance India’s Semiconductor Aim

0
In a significant development that bodes well for the nation's semiconductor sector, the India Electronics and Semiconductor Association (IESA) established a strategic partnership with...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Manufacturing

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Tesla Starts Making Cars In Germany For India Exports This Year

0
A Tesla team is set to visit India this month to scout locations for a car manufacturing plant, with an estimated investment of around...
Sona Comstar

Sona Comstar Earns Second PLI Certification For Electric Two-Wheeler Hub Motor

0
In 2021, the government launched a five-year output-linked incentive scheme with a budget of Rs 25,938 crore to enhance local production of advanced automotive...