Emphasizes Need to Produce Leading-Edge Chips for AI

One year ago, U.S. Secretary of Commerce Gina Raimondo delivered a speech at Georgetown University’s School of Foreign Service where she  outlined her vision in implementing President Biden’s historic CHIPS and Science Act.  Last week, she provided an update on its implementation and announced that future projects will be prioritized based on whether they can be operational by 2030, putting America on track to produce 20% of the world’s leading-edge logic chips by the end of the decade. This announcement reflects President Biden’s commitment to lead the world in the production of semiconductors while stimulating private sector investment and creating good-paying jobs for all Americans.

During her remarks at the Center for Strategic and International Studies (CSIS), Secretary Ramondo stressed that semiconductors are the single most important piece of hardware in the 21st century and that America must increase chip-making in the U.S. to protect both America’s economic and national security. Secretary Raimondo also emphasized how AI has spurred the unprecedented demand for leading-edge chips from the semiconductor industry.  

“AI has emerged as a game changer, driving unbelievable demand for leading-edge chips,” said Secretary Raimondo. “If we want to continue to lead in AI and other central technologies, then we must successfully implement this CHIPS initiative and make sure we are being bold enough with our vision.”

To date, three investments have been made in current and mature chip companies – BAE, Microchip, and Global Foundries – and major, multi-billion-dollar announcements are expected over the coming weeks.

“We anticipate that our investments in leading-edge logic chip manufacturing will put us on track to produce roughly 20% of the world’s leading-edge logic chips by 2030, up from the zero percent we produce today,” said Raimondo.

During the past year, CHIPS for America has received over 600 statements of interest from companies looking to invest in America’s semiconductor industry and announced more than 50 community colleges across 19 states have new or expanded programming to support semiconductor industry opportunities. In addition, the National Semiconductor Technology Center was created to address the R&D challenges facing America’s chip manufacturing ecosystem and to scale up the robust, skilled workforce needed to power it.

“We’re making tremendous progress in implementing President Biden’s vision of a strong and vibrant American manufacturing sector,” said Raimondo. “Together, we are rebuilding our industrial base, supercharging American innovation, creating hundreds of thousands of good-paying jobs, and meeting the monumental challenges of our time.”

This week’s speech by Secretary Raimondo comes as the Biden-Harris Administration continues to roll out the implementation phase of the bipartisan CHIPS and Science Act. The law provides the Department of Commerce with $50 billion for a suite of programs to strengthen and revitalize the U.S. position in semiconductor research, development, and manufacturing—while also investing in American workers. 

Watch Secretary Raimondo’s remarks here and read the full transcript here.