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US President Joe Biden | Credits: AP Photo
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Biden administration allocates US$162M to boost domestic chip manufacturing

United States: The Biden administration is paying US$162 million to Microchip Technology to promote domestic chip manufacture – the second cash release connected to a 2022 law aimed at reviving US semiconductor manufacturing.

Incentives for Facility Modernization

As per the Commerce Department, the incentives announced Thursday include $90 million to modernize a facility in Colorado Springs, Colorado and $72 million to expand manufacturing in Gresham, Oregon. Microchip Technology Inc., situated in Chandler, Arizona, would be able to treble its domestic production and lessen its reliance on overseas facilities because of the expenditure.

Job Creation and Economic Impact

The money generated will fund the making of microcontrollers, which are used by the military as well as in autos, household appliances, and medical devices. As per the government officials, they expected the investment to result in 700 construction and manufacturing jobs over the next decade. 

“Semiconductors are the key input in so many goods that are vital to our economy,” Brainard said, adding that increased chip production in the United States would have reduced supply issues that caused the cost of automobiles and washing machines, among other items, to rise as the country emerged from the coronavirus pandemic in 2021, according to the report by the Reuters.

The Inflation rate has eased now, but President Joe Biden’s public approval has been damaged by the sudden price increase.

Legislative Support for Innovation

The bipartisan CHIPS and Science Act was signed by the Democratic President in August 2022, providing $52 billion to increase the development and manufacturing in the United States.

Earlier Grants and Ongoing Commitment

The Commerce Department announced the first grants in December, saying it had struck a deal to provide $35 million to BAE Systems, which aims to expand a New Hampshire factory that makes chips for military aircraft such as the F-15 and F-35 fighter jets.

The Biden administration has introduced a novel program to promote economic development and technological advancement throughout the country. Last month, Joe Biden issued an executive order to promote the “safe, secure, and trustworthy” use and development of AIAI by addressing broad issues related to privacy, misinformation, and discrimination. 

AI advancement

President Biden is issuing a landmark Executive Order to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence (AIAI). The Executive Order establishes new standards for AIAI safety and security, protects Americans’ privacy, advances equity and civil rights, stands up for consumers and workers, promotes innovation and competition, advances American leadership around the world, and more.

As part of Biden’s Administration’s comprehensive strategy for responsible innovation, the Executive Order builds on the President’s previous actions, including technological advancement in not only the military but also household appliances and medical devices.

Executive Order ensures that we continue to lead the way in innovation and competition

Catalyze AIAI research across the United States through a pilot of the National AIAI Research Resource—a tool that will provide AIAI researchers and students access to key AIAI resources and data—and expanded grants for AIAI research in vital areas like healthcare and climate change.

Promoting a fair, open, and competitive AIAI ecosystem by providing small developers and entrepreneurs access to technical assistance and resources, helping small businesses commercialize AIAI breakthroughs, and encouraging the Federal Trade Commission to exercise its authority.

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