Gina Raimondo, the US Commerce Secretary, said on Monday that a proposed $52 billion boost in US government funding for the semiconductor production and research may lead to an addition of seven to 10 new factories in the country, reported Reuters.
Speaking at an event outside a Micron Technology Inc chip factory, Raimondo said she anticipated the government funding would generate more than $150 billion in investment in chip production and research. This will include contributions from state and federal governments and private sector firms.
“We just need the federal money … to unlock private capital,” Raimondo said, adding, “it could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done,” reported Reuters.
As per GM Authority, US Senate Democrat leader Chuck Schumer’s proposed bipartisan bill would sideline $39 billion for production and R&D incentives, while another $10.5 billion will be kept aside for federally-funded programs and institutions like the National Semiconductor Technology Centre and National Packaging Manufacturing Program. Schumer put forth an emergency funding proposal last week that would set aside $52 billion to support the American semiconductor manufacturing industry.
The world is currently facing one of the worst semiconductor chips shortages of all times, caused by factors including a rise in demand for electronic devices during the pandemic. This has impacted several industries including automakers like General Motors, Ford Motors, and Toyota Motor who have cut their production this year due to the shortage.
Adding further on Monday at the event, US Senator Mark Warner said, “This is not going to solve this overnight. It will take years for the Commerce Department to make these investments”.
