- The White House on Friday announced a $5 billion investment in research, development and workforce needs focused on semiconductors as part of the CHIPS and Science Act.
- The announcement is the latest phase of the CHIPS and Science Act of 2022, intended to support chip manufacturing in the U.S. and boost its competitiveness.
- The move comes as demand for chips to power artificial intelligence (AI) systems increases.
President Joe Biden’s administration is investing more than $5 billion in semiconductor-related development to strengthen the U.S. chip industry as demand for artificial intelligence (AI) technology hardware increases.
The administration said Friday that the money will go toward semiconductor research and development (R&D), as well as workforce development in the industry. The announcement is the latest phase of the CHIPS and Science Act of 2022, which created the largest publicly funded R&D program in U.S. history to support U.S. chip manufacturing and reduce dependence on others. countries.
“These investments advance U.S. leadership in semiconductor research and development, reduce the time and cost of commercializing new technologies, strengthen U.S. national security, and connect and support workers to secure good semiconductor jobs.” said the White House.
The White House announced its first grant under the CHIPS and Science Act in December. Defense contractor BAE Systems (BAESY) was awarded $35 million to modernize a former factory in Nashua, New Hampshire. The move drove up shares of chipmakers like Intel (INTC) and Advanced Micro Devices (AMD) at the time.
Last month, the Commerce Department also said it would give Microchip Technology (MCHP) $162 million in federal CHIPS Act funds to boost chip production.
Semiconductor stocks, including Intel, AMD, Nvidia and Broadcom (AVGO), advanced Friday on the news. The PHLX Semiconductor index has gained more than 50% over the past year.