On Tuesday, August 9, President Joe Biden signed the CHIPS Act of 2022. This act, aimed at increasing research and manufacturing of semiconductors, will help reduce the shortage of chips needed in vital pieces of technology. Cloud services, used for data backups and storage by both individuals and companies, cell phones and computers require semiconductor technology.
Without semiconductor chips, we are not able to make use of the technology we have developed. The shortage has slowed down production of devices that are used by people worldwide every day and might stunt potential growth and development. The CHIPS Act is poised to help alleviate this shortage.
The acronym CHIPS is short for Creating Helpful Incentives to Produce Semiconductors. According to United States Senate documentation, the act will grant billions of dollars each fiscal year to important initiatives related to this mission, such as the National Semiconductor Technology Center (NSTC). To receive funding, these initiatives must meet certain terms. For example, “construction projects funded under the CHIPS Act are subject to Section 602 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3212).”
One of the goals of the act is to centralize semiconductor production in the US. Maryam Rofougaran is the CEO of Movandi, a company focused on 5G technology, spoke to CNBC about the importance of this. “’Making chips in the U.S. will help the companies get them consistently and it will create good-paying jobs which is good for the economy,’” said Rofougaran.
What exactly is a semiconductor? Semiconductors are neither complete conductors of electricity nor complete insulators. This word is used to describe basic materials with this property – such as germanium. The Semiconductor Industry Association states that the process of “doping” aids in creating the right amount of conductivity.
To increase understanding of the importance of semiconductors to the United States, the SIA has created a factsheet. Semiconductors are among one of the country’s biggest exports and are important to sectors like national security. According to the SIA, “the semiconductor industry directly employs over a quarter of a million people and supports nearly 1.8 million additional U.S. jobs.”
Technology goes far beyond the phones we hold in our hands and the laptops we use to complete assignments. Industries are interconnected, and what affects one may affect many others. Semiconductors are an example of this.
To learn more about semiconductors and what the CHIPS Act of 2022 means for the industry, visit the Semiconductor Industry Association’s website: https://www.semiconductors.org/.
Carly Webster
Staff Writer