U.S. invests money into chips, but even sparing spending has limits
In September, Intel, the chip giant, gathered representatives in a patch of land near Columbus, Ohio. There, Intel pledged to invest at least $20 billion in two new factories to construct semiconductors.
After a month, Micron Technology opened a new manufacturing place near Syracuse, New York. It was where the chip firm anticipated spending $20 billion by the end of the ten year-period and perhaps five times that. Additionally, in December, Taiwan Semiconductor Manufacturing firm held a shindig in Phoenix, where it aims to triple its investment to $40 billion and construct a second new factory for creating advanced chips.
The pledges are part of a vast ramp-up in the chip-making plans of the United States over the past 18 months. The boom indicates global technological leadership and geopolitics, with the U.S. intending to stop China from becoming an improvised power in chips, the slices of Silicon that directed the formation of innovative computing devices such as smartphones and virtual-reality goggles.
Today, chips are a vital part of modern life despite the creations of the tech industry, from military gear and cars to kitchen appliances and toys. Across the nation, more than 35 firms have guaranteed $200 billion across the country for constructing projects relevant to chips since the spring of 2020, according to Semiconductor Industry Association, a trade group. The fund is meant to be consumed by 16 states, which include Texas, Arizona, and New York, on 23 new chip factories, the growth of nine plants, and investments from firms providing equipment and materials to the industry.
The U.S. firms have led chip production for a period of 10 years beginning in the late 1950s. But the nation’s share of global production capacity reduced from 37% in 1990 to 12%, as Asian countries gave incentives to move production to those stores. Today, Taiwan accounts for about 22% of total chip manufacturing and more than 90% of the most optimized chips made, according to industry analysts and the Semiconductor Industry Association.
The new spending is bound to enhance the position of the United States. A $50 billion investment of the government is likely to give rise to corporate spending that might take the U.S. share of global manufacturing to approximately 14% by 2030, in accordance with a Boston Consulting Group study in 2020, which the Semiconductor Industry Association commissioned.
John Neuffer, the association’s President, said it really puts them in the game for the first time in decades. He also added that the estimation might be conservative due to the approval of Congress for $76 billion in subsidies in an act called the CHIPS Act.
But still, the ramp-up is not likely to remove the dependency of the U.S. on Taiwan for most improvised chips. Such chips are the most high-powered because they pack the most significant number of transistors onto each silicon slice and are always held up as an indication of the nation’s technological progress.
- Published By Team Nation Press News
