US officials do not want China to benefit from this fund. US R&D agencies also want to address hardware shortages.
The Joe Biden administration plans to launch a $5 billion semiconductor research consortium to boost chip design and hardware innovation used in electronics products. Its main objective is to prevent China from monopolizing the industry.
Officials on Friday officially announced the establishment of the National Semiconductor Technology Center, or NSTC. It is considered the second highest investment in the industry after the passage of the CHIP Act in 2022.
According to a report, governments of various countries started investing in chip production on a large scale domestically to reduce dependence on Asian countries, especially China. As part of this, the US government passed the US CHIPS Act in August 2022.
Basically making computer chips or semiconductors is not easy. Taiwan Semiconductor Manufacturing Company (TSMC) has run into trouble as it plans to build an advanced chip manufacturing plant in Arizona. The company complained that production was hampered due to lack of skilled workers.
Technologists believe that the continued efforts to rapidly build factories and produce chips in the US and Europe will have two problems. First the same product will be manufactured and converted into waste.
Earlier, a report on US chip research said that during the pandemic, major problems were created in the supply chain of chips. Apart from this, there has been concern about various geopolitical issues in Asia. Where 90 percent of the world’s advanced chips are made here.
Needless to say, even though the Corona crisis has passed, a severe chip crisis has emerged in 2021. At that time global dependence on a small number of suppliers became apparent. And it was at that time that the United States paid special attention to chip making.
According to the report, not only the United States, but also the European Union has taken a project of 4 thousand 3 billion euros in chip production. The UK has also pledged to invest £1 billion in the chip manufacturing sector.
Technology research analyst Hannah Dohmen said more than 500 companies have applied to fund their projects under the US CHIPS Act. India has come a long way with this chip. The country also has fierce competition with China. That is why the United States and other allied countries are trying to strengthen technical cooperation with India.
