White House Bets Big on Chips, $5 Billion for National Semiconductor Hub as Arizona Eyes Tech Throne

White House Bets Big on Chips, $5 Billion for National Semiconductor Hub as Arizona Eyes Tech ThroneSource: Unsplash/Maxence Pira
Steve Wilson
Published on February 12, 2024

The White House has laid down a $5 billion wager on the nation's tech future with its investment in the National Semiconductor Technology Center (NSTC), aiming to fortify the United States' position in the global computer chip market. The federal initiative, touted last Friday, seeks to establish a conglomerate of top-tier research and engineering facilities throughout the U.S., alongside a consortium of government, industry, and academia. This mammoth investment in the NSTC, drawn from the CHIPS Act's deep pockets, was revealed by federal officials. as reported by abc15.

Named by officials in Arizona seeking to secure the consortium's headquarters, the NSTC's mission is to accelerate the development of advanced semiconductors and cultivate a skilled workforce to sustain the industry. In the pursuit of innovation dominance, The Department of Commerce has announced an intent to lay out $200 million for the CHIPS Manufacturing USA Institute, promising companies a chance to dabble in semiconductor manufacturing at an affordable rate. This announcement, along with a commitment of $300 million towards substrate research—an integral component in semiconductor fabrication—was communicated by the Department of Commerce, according to Business Journal.

Arizona, bustling with over 200 semiconductor manufacturers, is vying strongly for the prestigious honor of hosting the NSTC HQ. Banking on a solid semiconductor foundation and a state-wide effort to synchronize CHIPS Act initiatives, Arizona's stakes in the semiconductor field have escalated with its over $77 billion in private sector funding since 2020. TSMC and Intel are amongst the heavyweight champions, pouring billions into the Arizonian soil, creating fabs expected to bolster the state's and the nation's economic engine. Sandra Watson, president, and CEO of the Arizona Commerce Authority, described Arizona's aspirations to leverage its robust semiconductor ecosystem, as per Business Journal.