The United States government is taking significant steps to protect national security, American interests, and tech jobs through a series of strategic investments and legislative actions. One of the most notable initiatives is the establishment of the National Semiconductor Technology Center (NSTC), a $5 billion semiconductor research consortium aimed at bolstering chip design and hardware innovation in the U.S. This move is part of the broader efforts to counter China’s advancements in the semiconductor industry and to fill gaps in hardware and packaging innovation.
The NSTC is a direct result of the 2022 CHIPS Act, which represents a historic investment in semiconductor R&D. The CHIPS and Science Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development, including $39 billion in manufacturing incentives and $13.2 billion in R&D and workforce development. This act is a comprehensive approach to revitalize the innovation pipeline, align R&D with commercial priorities, and strengthen U.S. technological competitiveness.
In addition to the NSTC, the CHIPS Act also includes provisions for a semiconductor investment tax credit of approximately $24 billion, which is expected to catalyze private investments in domestic semiconductor manufacturing. This is crucial for maintaining the U.S.’s edge in critical and emerging technologies, as well as for ensuring a robust supply chain that is less dependent on foreign sources.
The U.S. Department of Justice has outlined strategies to protect national security, including investigating and prosecuting threats to America’s national and economic security, such as foreign influence operations, economic espionage, and attacks on critical infrastructure[3]. These efforts are complemented by the Biden Administration’s executive order on safe, secure, and trustworthy artificial intelligence, which establishes new standards for AI safety and security, protecting American interests and jobs.
The CHIPS and Science Act is a key part of the Biden-Harris Administration’s industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains, and accelerate the industries of the future. This strategy has already spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs since 2021. The Act also authorizes $10 billion to invest in regional innovation and technology hubs across the country, fostering regional economic growth and development.
The Act is expected to lower costs, create jobs, and strengthen supply chains. It includes important guardrails to ensure that companies receiving taxpayer dollars invest in American workers and communities. The Act is also expected to add nearly 50,000 jobs, and companies have announced $166 billion in investments in semiconductors and electronics in the year since the Act was signed into law.
In conclusion, the U.S. government is taking significant steps to protect national security, American interests, and tech jobs through the CHIPS Act and other initiatives. These efforts are crucial for maintaining the U.S.’s technological competitiveness, ensuring a robust supply chain, and fostering economic growth and job creation.