The Biden administration has laid out rules to reinvigorate the domestic semiconductor industry, and bring supply chains back to the country. Credit: Magdalena Petrova/IDG The Biden administration has initiated an application procedure with guidelines for proposals from semiconductor maunfacturers that want to take advantage of incentives offered by the US CHIPS and Science Act. The application process focuses on furthering the Biden’s administration goals to “revitalize domestic semiconductor industry and bring supply chains back to the US,” the Department of Commerce said in a press release. The Department of Commerce is administering the $50 billion CHIPS program to revive the US semiconductor industry, including $39 billion in incentives to expand or build manufacturing facilities. The incentives are meant meant to “restore U.S. leadership in semiconductor manufacturing, support good-paying jobs across the semiconductor supply chain, and advance U.S. economic and national security,” the Commerce Department said. First CHIPS Act funds target building of facilities The first funding opportunity under the CHIPS program is for “applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging,” the Commerce Department said. Some of the conditions showed the administration’s social and economic priorities, including for a diverse workforce. Applicants seeking over $150 million in direct funding need to submit plans “to provide both their facility and construction workers with access to affordable, accessible, reliable, and high-quality child care. In addition, applicants are strongly encouraged to use project labor agreements for construction projects,” the department said. Chip shortage seen as national emergency In a statement last year, Raimondo dubbed the semiconductor shortage caused by the pandemic an issue of “national security,” as it showed the dependency of US manufacturing on imports of chips from outside the country. Semiconductors play a significant role in military applications and are critical components in cybersecurity tools. The US’ share of the global semiconductor manufacturing capacity has plummeted from 37% in 1990 to 12% in 2022, according to a report by Semiconductor Industry Association, “mostly because other countries’ governments have invested ambitiously in chip manufacturing incentives and the U.S. government has not.” In response, the Biden administration pushed Congress to hammer together several separate bills to enact the CHIPS Act, which was signed into law by Biden in August last year. This has led several chip-making giants including TSMC, Samsung, and Intel to announce investments. “Semiconductor chips are the building blocks of the modern economy – they power our smartphones and cars. And for years, manufacturing was sent overseas. For the sake of American jobs and our economy, we must make these at home. The CHIPS for America Act will get that done,” President Biden tweeted last year. “America is going to lead the way in microchip manufacturing,” pledged President, in another tweet later last year. Related content news Apple updates its Platform Security Guide It's essential reading for IT admins, security researchers and anyone with an interest in Apple security, now updated for 2024. By Jonny Evans May 10, 2024 4 mins iOS Security Mac MacOS Security feature Q&A: Insurance exec says AI nearly perfect when processing tens of thousands of documents In the second phase of a genAI pilot program, Sedgwick found it could process documents up to 30 pages long and summarize them in minutes, allowing claims administrators to reduce resolution time. By Lucas Mearian May 10, 2024 11 mins Chatbots Financial Services Industry Generative AI tip An awesome Android audio upgrade Whether you're dealing with mumblings from meetings, noises from notifications, or music from commute-time streaming, you've never experienced sound on your phone like this. By JR Raphael May 10, 2024 9 mins Mobile Apps Android Mobile news Strict return-to-work policies may be driving tech workers away In-office mandates aren’t great for employee retention, according to a university study that gathered data from workers at Microsoft, Apple and SpaceX. By Jon Gold May 09, 2024 3 mins Remote Work Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe