The United States can accommodate the entire silicon supply chain necessary for the production of advanced chips, particularly those critical for artificial intelligence applications, according to US Commerce Secretary Gina Raimondo.
WASHINGTON, DC - JULY 25: U.S. Secretary of Commerce Gina Raimondo listens as U.S. President Joe Biden participates virtually in a meeting on the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, in the South Court Auditorium at the White House on July 25, 2022 in Washington, DC.
US Commerce Secretary Expresses Confidence in Housing Silicon Supply Chain
According to AFP, Raimondo's remarks underscore a strategic shift in the nation's approach to chip manufacturing, signaling a concerted effort to bolster domestic production capabilities to maintain its technological edge and national security interests.
With the rapid rise of artificial intelligence across various sectors, including defense, healthcare, and finance, securing a reliable and robust semiconductor supply chain has become paramount for the US.
At the heart of this initiative lies a commitment to strategic investments in US manufacturing infrastructure to position the nation as a global leader in chip production.
Raimondo outlined ambitious targets, saying that these investments will enable the US to produce approximately 20 percent of the world's leading-edge logic chips by the decade's end.
Acknowledging the transformative impact of AI on various sectors, including national defense, Raimondo emphasized the necessity for the US to strengthen its position in chip manufacturing to maintain its status as a technology and innovation leader.
Operational Success by 2030
In line with this objective, Raimondo outlined plans to prioritize projects that aim to enhance advanced chipmaking capabilities, focusing on achieving operational success by 2030.
According to AFP, the demand for federal funding in this domain has been substantial, with advanced semiconductor companies requesting more than double the current allocation.
The recent announcement of a $1.5 billion direct funding allocation to chipmaker GlobalFoundries under the CHIPS Act underscored Washington's commitment to bolstering domestic chip production.
This initiative marks the third such allocation following agreements with BAE Systems Electronic Systems and Microchip Technology, signaling the government's concerted effort to support and incentivize the expansion of domestic chip manufacturing capacity.
Speaking at the Center for Strategic and International Studies think tank in Washington, Raimondo said: "The brutal fact is, the United States cannot lead the world as a technology and innovation leader on such a shaky foundation. We need to make these chips in America."
US Imposes Import Restrictions on China's SMIC
The US Commerce Department has introduced import restrictions on China's Semiconductor Manufacturing International Corp's (SMIC) advanced facility for Huawei's Mate 60 Pro Phone.
The manufacturer received letters in late 2023 banning shipments to SMIC South, ultimately halting millions of dollars worth of shipments.
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