US launches $5 billion research center to stay ahead in chip race | World News – Business standard
President Joe Biden’s administration plans to launch a $5 billion semiconductor research consortium to boost chip design and hardware innovation in the US and counter China’s attempts to take the forefront of the industry.
Officials will formally establish the National Semiconductor Technology Center (NSTC) on Friday, marking the second major research and development investment from the Chips Act of 2022 following a $3 billion advanced packaging initiative.
The consortium plans to invest hundreds of millions of dollars in workforce development and plans to open funding applications for research grants in early March, said Commerce Undersecretary for Standards and Technology Dr. Laurie E. Locascio in an interview with Bloomberg News. Officials are trying to prevent China from benefiting from NSTC-funded research while filling gaps in the U.S. research ecosystem in key areas such as packaging and hardware, she said, as electronic components have become a key battleground between the U.S. and China.
“They are currently investing quite a few dollars in chip design and chip manufacturing in China, as our main competitor,” Locascio said.
First print: February 10, 2024 | 12:15 pm IST