The CHIPS and Science Act Provides $52 Billion to Expand Domestic Semiconductor Manufacturing.
The CHIPS Act may sound like an 80’s era TV show starring Erik Estrada. In reality, it’s a boon for the United States semiconductor industry. The CHIPS and Science Act provides more than $52 billion over five years to increase semiconductor manufacturing in the United States.
The funds will go toward adding new facilities or expanding current manufacturing plants that make semiconductors or equipment for chipmaking. It’s part of a $280 billion investment to make United States companies and technology more competitive in the future.
Domestic Solutions to the Global Chip Shortage.
During the pandemic, the global chip shortage illustrated the need to increase domestic chipmaking capacity. The bill’s $52 billion consists of $39 billion in grants for new manufacturing, $11 billion for semiconductor research and workforce development and $2 billion for microelectronics and semiconductors that are essential for the military, automotive and other manufacturing industries.
A DHF Technical Products employee in a heat suit at our precious metal target manufacturing facility in Rio Rancho, New Mexico.
Growing the Semiconductor Workforce.
An additional $200 million over five years will promote growth in the semiconductor workforce which has been estimated by the Commerce Department to grow by more than 90,000 workers by 2025. The bill also authorizes a 25% tax credit for new or expanded semiconductor plants (often called “fabs”) and facilities that manufacture chipmaking equipment. Many large chipmakers have announced plans to expand their current United States capacity or add new fabs.
New Capacity Means New Partnerships.
As fab capacity expands in the United States, many chipmakers and other companies will be seeking new partners for their manufacturing processes. Successful expansion of semiconductor capacity means companies will have to work together across the ecosystem of partners, suppliers, designers and manufacturers. The people of DHF Technical Products understand the challenges of the precious metal space like no other sputtering target manufacturer. If your plans call for innovative, custom gold, silver, platinum or palladium sputtering targets, we look forward to partnering with you to help your company, and the United States semiconductor industry, take a leap forward.
