US Looking to More Chip Manufacturing

Biden was in Ohio recently to celebrate the construction start of a new multi-billion Intel facility that is going to hopefully be open by around 2025.

The project appears to be moving forward thanks to generous promises in funding via subsidies from the gov.

The funding to help the endeavor is coming from the CHIPS Act and there are also going to be other financial incentives that are aimed at encouraging more research and development in this area in the country.

With the launch of that facility Biden vowed that chip manufacturing is going to be made in America thanks to the new venue that will broaden supply possibilities.

These chips are used in many of the electronic devices that we use in our lives today and through the pandemic we saw a great worldwide shortage come about. There was a massive worldwide shortage of chips to the point that some companies like GM were concerned about the risk of losing billions in earnings.

Previously, Biden signed an executive order that prompted a look into the supply chain, looking for any gaps that might be there.

Most semiconductors are coming from China, South Korea, and Taiwan, and there has been growing interest to bring some of that manufacturing demand to the US to diversify the market.

Companies and consumers are going to be better off when there are more diverse options for what they need. When only a handful of operators are producing the product then there is great risk of the supply chain becoming disrupted. However, good ideas can be funded voluntarily and don't need to be subsidized by the people especially when many of those people are financially struggling themselves just to keep a roof over their head.

pics:
pixabay
source:
https://www.theverge.com/2022/9/9/23344834/semiconductor-joe-biden-ohio-intel-gelsinger-chips-science-subsidies