Taking a huge step to further promote the American semiconductor industry, the Biden-Harris administration has announced an investment of over $5 billion in maintaining the relevance of the semiconductor sector about the research, development, and workforce requirements. This significant investment highlights the administration's dedication to technology development and increasing the country's position as a major player in the world semiconductor market.

The US drives R&D

Investment is aimed at building NSTC's capacity to lead in R&D of the semiconductor sector. Through the design, prototyping, and piloting of the latest semiconductor technologies, the NSTC will secure a prime role in sustaining the leading position of the United States in the field.

The NSTC has a mandate beyond research and development, it will also foster a skilled and diversified workforce in the semiconductor industry. As a center for acceleration, through the provision of shared facilities and core capabilities, the aim is to provide innovators with access to diverse and global platforms while addressing the core needs of the semiconductor industry.

CHIPS and Science Act: a historic funding

The latest investment is a component of the CHIPS and Science Act roll-out which targets to revamp the US semiconductor manufacturing, research, and development. The Act includes $11 billion in total funding which supports programs such as NSTC, NAPMP, CHIPS Metrology Program, and the CHIPS Manufacturing USA Institute.

Through this investment in the CHIPS and Science Act, the US is economically competitive and national sovereignty would be empowered by the reduction arising from commercializing the new technologies and its related costs. In addition to that, the bill attempts to develop domestic semiconductor production, as the US currently produces at least 10% of the global supply and none of the most advanced chips.

Industry Response and Market Effects

Semiconductor equities have already benefited from the investment news, with rises seen in the shares of Intel, AMD, Nvidia, and Broadcom. The PHLX Semiconductor Index has increased by more than 50% in the last year, indicating that the semiconductor sector as a whole has also seen tremendous growth.

To sum up, the Biden-Harris administration's dedication to funding workforce development, research, and development of semiconductors is an important step in maintaining America's position as a worldwide leader in innovation and technology.