Industry chooses US over China and Japan to make chips: Biden



The global chipmaking industry is opting for the United States over countries like China and Japan to set up their factories, President Joe Biden said in announcing two major investments by such companies here.

China, Japan, South Korea, the European Union — all of these countries are investing tens of billions of dollars to attract chipmakers to their countries. But industry leaders choose us, the United States, because they see America is back and America is leading the way, Biden told Intel’s groundbreaking site on Friday. New Albany, Ohio.

Intel will build a workforce of the future right here in Ohio, he said in his speech to mark the grand opening of Intel’s new semiconductor manufacturing facility.

America invented this chip, he says.

America invented it. It powered NASA’s lunar mission. The federal investment helped reduce the cost of manufacturing these chips, creating a market and an entire industry. As a result, more than 30 years ago, America had more than 30% of the world’s chip production, the president claimed.

Then something happened. America’s manufacturing industry, the backbone of our economy, has emptied out. Companies moved jobs overseas, especially from the industrial Midwest. And as a result, today we produce barely 10% of the world’s chips, despite our lead in chip research and design, he said.

And as we’ve seen during the coronavirus pandemic, when the factories that make these chips shut down, the global economy shuts down, driving up costs for families and for everyone, not just here, but all over the world. In fact, a third of underlying inflation last year was due to rising auto prices due to shortages of the semiconductors needed to build those automobiles, he said.

Biden claimed that these chips must be made domestically.

My friends, we need to manufacture these chips here in America to reduce daily costs and create good jobs. Don’t take my word for it. Hear from business leaders across the country. They’re making decisions right now on where to invest and produce these chips, he said.

The president said after taking office that the US economy had created nearly 10 million new jobs and more than 668,000 manufacturing jobs.

Because I signed into law the CHIPS and Science Act, we are accelerating progress. This new law makes historic investments for companies to build state-of-the-art manufacturing facilities in America, he added.

The American company Micron has announced that it will invest 40 billion dollars over the next 10 years to build factories, special chips called memory chips that store information on smartphones. It will create 40,000 well-paying jobs and increase the United States’ share of the memory chip market by 500 percent, he said.

Two other companies – GlobalFoundries and Qualcomm – have announced a $4 billion partnership to produce chips in America that would otherwise have been made overseas.

Qualcomm is one of the world’s largest chipmakers and plans to increase production by up to 50% over the next five years, he said.

Today in North Carolina, Wolfspeed is investing $5 billion to make chips for electric vehicles that will create 1,800 well-paying jobs over five years. My friends, the future of the chip industry will be made in America. People at home need to know that manufacturing these semiconductors connects countless small businesses and manufacturers to a supply chain that will thrive under this law, Biden added.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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