4.4 C
London
Tuesday, December 6, 2022

CHIPS Act will cut costs for thousands of consumers

Must read

Deion Sanders shows that upward mobility isn’t just for white coaches

After it was announced that football is great Deion Sanders left his coaching job at Jackson State University for a job at the University...

Meta’s Oversight Board Wants Facebook To Be More Transparent About VIP Accounts • londonbusinessblog.com

A year ago, The Wall Street Journal revealed that Facebook operated a two-tiered content moderation system. Normal users were subject to the rules...

Jenson Funding Partners Unveils New €69.7M Fund for Startups Driving Net Zero Transition

UK based early stage venture capital firm Jenson Financing Partners steps up support for startups to drive the green transition with the launch of...

Singapore super app for business services, Osome, raises $25 million Series B • londonbusinessblog.com

Osome is a "super app" for businesses that helps entrepreneurs with administrative tasks such as payroll, bookkeeping, and tax filing. The company announced...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

On Thursday, the House passed a bipartisan bill to help the US compete with China by sending billions to domestic semiconductor manufacturing. The CHIPS and science law (which stands for Creating Helpful Incentives to Produce Semiconductors for America) provides more than $52 billion for U.S. companies that make computer chips and billions for scientific research. The bill passed the Senate on Wednesday, meaning it now goes to President Joe Biden’s office to be signed into law.

Do you want to know more about the legislation, londonbusinessblog.com spoke with Arizona Senator Mark Kelly, one of the key negotiators behind the Senate bill. The conversation has been edited for length and clarity.

We have been monitoring the progress of this bill and it now looks like it is very close to the finish line.

It’s really good news for the country. This will help reduce the cost of tens of thousands of consumer products. I’d say cars are at the top of the list for people; even the cost of used cars has risen due to the shortage of semiconductor chips.

Production lines have stopped in some cases because they can’t get chips. So this will have a very positive impact on the way individuals manage their personal finances, but this is also very important for our national security.

We cannot allow China to become a leader in semiconductor chip manufacturing. We used to make the best chips in the world. We made the first. This stuff was invented here and we had about 40% of the global production. We are now at 12%. And it’s getting worse.

What do you think about the idea that, even with this funding, it will still take years to get up to speed with the production of the most complex for AI and stuff like that?

The companies that will benefit from this legislation have a history of building high-performance semiconductor chips. They are going to build fabs [semiconductor fabrication plants] here in the United States. They have one under construction in Arizona right now, and they’re going to build more. They make the best chips in the world. So they are well positioned here; but this legislation also includes the entire ecosystem. It is the ability to design the best microchips in the world. This funding is therefore intended to help organizations and universities and companies design the best microchips.

We cover the entire universe of microchip manufacturing. Arizona becomes a hub in the United States. Other states will pick up semiconductor manufacturing — I’d say Texas, Ohio, New York. This will benefit the country’s economy, and it will help us be safe as a nation.

China has a very ambitious plan to make better microchips. They make a lot of what we would call old potato chips, you know, the thing that goes in your washing machine. But they recently made a 10-nanometer microchip, so they jumped a few generations. They often learn how to do this by stealing the intellectual property of other companies in other countries, including the United States. They have a habit of doing this, and they have a plan to become a leader in semiconductor manufacturing.

Well, we have a plan. Our plan is going to attract companies. Companies want to be here. They don’t want to be in China. But this legislation will help them make a decision to build these manufacturing facilities here.

We’ve heard that China’s form of government gives them great ability to influence their commercial businesses so that their defense always has what it needs. Is there anything in this bill that will allow the DoD to get the advanced chips they need?

The DoD buys a lot of chips from TSMC [a Taiwanese multinational semiconductor manufacturing company] and other manufacturers. They don’t buy much from China. Some chips that DoD uses are sent from China to be tested. And we don’t have capacity in the United States to test semiconductor chips. This legislation will also solve that. So DoD will be able to get what they need. I recently spoke to the head of Raytheon, and a Javelin [missile], for example, has 250 microchips. DoD should have a ready supply, and it shouldn’t be a supply that has to come across an ocean.

These supply chains crossing the Pacific for items that we need for our national security, this is a big deal. If the Chinese invaded Taiwan and we didn’t have access to semiconductor chips from Taiwan, we estimate that in a year or two we would lose 10% of our GDP because we wouldn’t have access to semiconductor chips. You can’t make a phone. You can’t make fighter planes. You can’t make satellites, washing machines, vacuum cleaners, basically anything that contains electronics.

We have been working on this legislation for a year. I never thought of this thing as optional. Some people think this is optional. This is not optional. That is, our national security is at stake when we talk about having access to the best chips in the world.

We know that the CHIPS Act is creating a series of innovation hubs across the country. What is the central purpose there? Is it to develop new kinds of chip technology?

The circuits are getting so small that it becomes a challenge to continue Moore’s law and double the speed every year. The 5 nanometer chip in an iPhone has about 2 1/2 billion circuits in a square centimeter. Two and a half billion! On something the size of your fingernail. It’s getting more technically challenging, so we need this partnership with government, academia, and industry to create the science and come up with the engineering to advance microelectronics at the same pace we’ve been since Intel before it. first started producing microchips.

If we’re able to further develop this technology, we will, you know, this is what enables things like artificial intelligence and quantum computing and quantum communication networks to be what we would like them to be.

To what extent do you think those Innovation Hubs can help spread more tech jobs to places other than the coasts?

Arizona is clearly not a coast. Arizona is becoming a center for semiconductor manufacturing, as well as chip design, as well as the ecosystem needed to train people to work in these high-paying jobs. So I think it will spread more technology to other parts of the country.

When and if the president signs this, are we going to hear announcements from chipmakers about, you know, plans for new facilities? How will we see the effects of the bill if it is passed?

I think one of the first things you’ll see is that Intel will probably reset the date for their Ohio groundbreaking. A few weeks ago, because this was going so slowly, and they were starting to worry, they delayed the construction of a great factory in Ohio.

They plan to build some. They plan to build two more in Arizona. Companies today make decisions about where to build facilities. So you’ll see announcements next week, I think, but some of this has already started. For example, TSMC is about 50% done with their first fab in Arizona. But it was built in anticipation of the United States of America doing something about this problem. They wanted to be in our country. So this legislation is the difference between building one facility and possibly many more.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Deion Sanders shows that upward mobility isn’t just for white coaches

After it was announced that football is great Deion Sanders left his coaching job at Jackson State University for a job at the University...

Meta’s Oversight Board Wants Facebook To Be More Transparent About VIP Accounts • londonbusinessblog.com

A year ago, The Wall Street Journal revealed that Facebook operated a two-tiered content moderation system. Normal users were subject to the rules...

Jenson Funding Partners Unveils New €69.7M Fund for Startups Driving Net Zero Transition

UK based early stage venture capital firm Jenson Financing Partners steps up support for startups to drive the green transition with the launch of...

Singapore super app for business services, Osome, raises $25 million Series B • londonbusinessblog.com

Osome is a "super app" for businesses that helps entrepreneurs with administrative tasks such as payroll, bookkeeping, and tax filing. The company announced...

Startup accelerator Atto asked ChatGPT why female founders get less funding and even the chatbot said ‘gender bias in VC is an issue that...

Atto, the Melbourne accelerator that helps female founders launch technology companies, has had another busy year helping more than 115 women launch technology companies. You...