A chip shortage could have prevented you from purchasing a Ford F-150, or Sony PlayStation during the worst days. Some of the $53 billion federal funds allocated to alleviate the problem may now be used to boost a new research center for chip manufacturing in Silicon Valley.
The Vice President Kamala Harris visited the Sunnyvale headquarters of Applied Materials on Monday. The chip manufacturing equipment provider announced a $4 billion investment centre in California’s hi-tech hub to boost the pace of advancements in processor manufacturing by 30%. The $53 billion isn’t yet allocated, but Applied Materials new center is the type of US research-and-development facility that it was designed to assist.
The miniaturization of chip circuitry has been a challenge for physics and engineers. This has led to a slowdown in the development of chips. During the same period, the majority of chip manufacturing has moved from the United States to Taiwan and South Korea, as well as other Asian countries.
The chip shortage caused by the pandemic revealed problems in the global supply chain and how dependent the United States is on overseas manufacturers for the arguably most important components of almost everything that has a battery or plug. In 2022, the CHIPS and Science Act was passed with a $53 billion subsidy to chip manufacturing and research. The Commerce Department has already received 300 expressions of interest from applicants who hope to access the funds.
The EPIC Center at Applied Materials, a $4 Billion Research and Development Center to Speed Chip Manufacturing Progress.
Applied Materials
The new Equipment and Process Innovation and Commercialization Center, which measures 180,000 square feet, is intended to accelerate progress and anchor industry in the US. Applied Materials’ EPIC Center aims to accelerate the transfer of ideas from the academic world to companies such as TSMC and Intel.
How big the EPIC Center will be depends on how much money it gets from the government. The company plans to spend $4 billion in seven years. Most of that will be spent in the first three.
“We are convinced that EPIC is a platform that will benefit the industry, regardless of the government incentives. The size of the center is subject to government incentives, Applied Materials stated in a press release.
Applied Materials is a leading manufacturer of chipmaking equipment. Intel, Samsung, TSMC, and other companies buy this equipment to build processors for phones, cars and toys. They also use it in military equipment and appliances. It is at the forefront of efforts to make chip circuitry smaller and more powerful.
EPIC Center will employ approximately 1,500 construction workers during its construction and create an additional 2,000 jobs in engineering once the center is operational.
According to the White House, the CHIPS and Science Act is responsible for corporate investments in semiconductor manufacturing of $140 billion.
