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The Biden Administration announced that it will be committing $5 billion to the research and development of advanced computer chips in a public-private consortium. This is in alignment with President Biden’s goal of increasing research and development in the U.S. by “cutting down on the time and cost of commercializing new technologies” (Jones II 2024). This push for chip production started in August 2022 with the Biden Administration passing the Chips and Science Act, which provided funds for the domestic production of semiconductors. This Act has led to the funding of the National Semiconductor Technology Center, which aims to increase the computer chip sector in the U.S. by providing billions of dollars in government support. 

Stakeholders in the chips and semiconductor industries gathered at the White House to discuss how the National Semiconductor Technology Center should designate research and would aid in training workers for this sector. The center would also help with the design development and prototyping of new chips. Currently, the U.S. faces three major challenges including: national security risks since chips are vital to its military weaponry, shortages in supply chains, and a semiconductor workforce. The Covid-19 pandemic exposed risks for the industry, including “the risk to the economy and national security of an overdependence on Taiwan for advanced chips” (Boak, 2024). The risks are becoming even more concerning as the development of AI keeps growing and the demand for newer and more chips is growing. 

According to Commerce Secretary Gina Raimondo, “‘This is an inflection point in the industry… Not just because we’re dangerously dependent on one country for so many of our chips, but because AI is going to lead to an explosion of demand for chips, for sophisticated chips, more energy-efficient chips, cost-effective chips’” (Boark, 2024). Raimondo hinted that there would be subsequent announcements about more funding for companies in the industry in the next 6 to 12 weeks. We can expect to see a rapid increase in the need for highly specialized workers in this field.

Source: https://apnews.com/article/computer-chips-research-development-biden-1bf58a0c58bc12ed68c40ab232d30a52. https://abcnews.go.com/Politics/biden-administration-announces-5-billion-commitment-research-development/story?id=107088192.