Commerce Secretary Raimondo: U.S. Aiming to Lead in Leading-Edge Logic Chip Manufacturing
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By The Smartencyclopedia Staff & Agencies

Washington, D.C. – Commerce Secretary Gina Raimondo announced on Monday that the Biden administration is actively working towards positioning the United States as a major player in the global semiconductor chip manufacturing landscape by the end of this decade. The goal is to manufacture approximately 20% of the world’s leading-edge logic chips, a significant leap from the current zero percent produced within the country.

Speaking at the Center for Strategic and International Studies, Raimondo highlighted the importance of investments in leading-edge logic chip manufacturing, emphasizing that this strategic move aims to enhance national security, stimulate job creation, and bolster the nation’s competitiveness on the global stage.

“This is a big deal. Why is that a big deal? Because folks, today we’re at zero,” remarked Raimondo during her speech.

The announcement follows the Biden administration’s efforts over the past year, including the opening of funding applications for the 2022 CHIPS and Science Act, which allocated $39 billion in manufacturing incentives. Raimondo outlined the ambitious goals set for 2030, which involve establishing at least two new fabrication plant clusters dedicated to designing and producing the world’s most advanced chips.

Raimondo anticipates that the implementation of this plan will result in the creation of hundreds of thousands of well-paying jobs. The leading-edge logic semiconductor chips targeted by this initiative are crucial components in cutting-edge technologies like artificial intelligence, quantum computing, and machine learning, according to McKinsey & Company.

“When we started this, generative AI wasn’t even really part of our vocabulary. Now it’s everywhere,” Raimondo remarked, highlighting the increasing importance of leading-edge semiconductor chips.

These chips, with node sizes of 14 nanometers and below, are considered leading-edge. The nanometer size refers to the individual transistor size on a chip, and a reduction in nanometer size allows for more powerful and efficient semiconductors.

While Taiwan Semiconductor Manufacturing Company currently holds the position of the world’s largest and most advanced contract chip maker, Raimondo pointed out China’s growing ambitions to increase its chip production. She highlighted that Chinese chipmaker Semiconductor Manufacturing International Corporation has seemingly defied U.S. sanctions and is preparing to produce five-nanometer chips for technology corporation Huawei.

In response to national security concerns, Raimondo mentioned that Commerce will deny funding to a significant portion of the more than 600 statements of interest from companies wanting to participate in the CHIPS Act. She emphasized the need for targeted investments aligned with national security objectives and clarified that, despite a substantial investment of about $28 billion from the program’s $39 billion in incentives for leading-edge chip manufacturing, the leading-edge companies alone have requested more than $70 billion.

The U.S. initiative comes as part of a broader strategy to secure the nation’s technological leadership and resilience in a highly competitive and rapidly advancing global landscape.

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