The government of President Biden revealed on Friday its plan to allocate $5 billion to a recently formed collaboration between the public and private sectors. This initiative is focused on funding research and development for cutting-edge computer chips.

The CHIPS and Science Act is providing funding for the National Semiconductor Technology Center. This legislation, enacted in 2022, seeks to revitalize the computer chip industry in the US by allocating tens of billions of dollars in specific government assistance.

Representatives from the chip sector met at the White House to determine the center’s focus on research and employee education in order to support the industry’s growth, which has been supported by the government. The pandemic highlighted the dangers of relying too heavily on Taiwan for cutting-edge chips, and the rise of artificial intelligence is expected to drive demand for even more advanced chips.

“This is an inflection point in the industry,” Commerce Secretary Gina Raimondo told the group. “Not just because we’re dangerously dependent on one country for so many of our chips, but because AI is going to lead to an explosion of demand for chips, for sophisticated chips, more energy-efficient chips, cost-effective chips.”

The facility would provide funding for the development and creation of novel chips, as well as offering training programs for employees in the industry.

Businesses claim that they require a proficient labor force in order to take advantage of the allocated $39 billion from the government for the development and expansion of computer chip factories. Raimondo emphasized that there will be a consistent stream of funding announcements for companies within the next six to 12 weeks.

The industry is expected to experience significant growth in demand for skilled employees. According to statistics from the Department of Labor, approximately 375,000 individuals are currently employed in the manufacturing of computer chips, with an average salary of $82,830.

Source: wral.com