A long-term vision of restoring the US back to the #1 position in advanced chip manufacturing and innovation, providing security, independence and jobs. We need more of this and less of cultural issues and book banning. Full remarks Commerce Secretary Gina Raimondo Says CHIPS Act Will Spark Something Bigger Than "A Few New Fabs" - Alliance for American Manufacturing Speaking at Georgetown University, Raimondo provided an update on the status of the CHIPS and Science Act, along with a long-term vision for America’s technological — and manufacturing! — leadership. In the 1960s, the United States found itself in a golden age of technological progress. As scientists and engineers raced to put a man on the moon, many other innovations were being made, marking the beginning of something that came to be known as “Silicon Valley.” It was during this time that the United States invented the semiconductor, a technological feat that transformed the globe. But as Commerce Secretary Gina Raimondo recalled on Thursday, this innovation didn’t happen in a vacuum. It was powered by manufacturing, as companies took lessons learned on the factory floor and used them to improve their inventions. “Tens of thousands of engineers in these companies would make daily incremental innovations in manufacturing techniques, resulting in improved scaling and yield, through expertise that is only possible by producing millions and millions of wafers,” Raimondo said in a speech at Georgetown University. “This relentless pace of fab-to-fab and fab-to-lab innovation became synonymous with America’s tech leadership, doubling our computing capacity every two years. This ecosystem enabled every smartphone, cloud computing service, new car, medical device, and weapons system we use today.” You probably know what ended up happening to America’s semiconductor industry. Despite being the country that invented semiconductors, the U.S. now only manufactures only about 12% of the global market share, down from 37% in 1990. That same year, the U.S. manufactured all of the world’s most advanced chips. Now the U.S. manufactures none, Raimondo said. Moving production overseas, in search of cheap labor and lower costs, has put America in a dangerous position. Some of those vulnerabilities have become apparent thanks to many of the pandemic-induced supply shortages. Raimondo gave an example of this vulnerability in her speech: In 2022, amidst the worldwide auto chips shortage, workers at Ford Motor Company factories in Michigan and Indiana worked a full week only three times. There are other examples, too. In the wake of the pandemic, medical device makers couldn’t find enough chips to make things like pacemakers and insulin pumps. All the while, China worked hard to grow its semiconductor industry, producing more than 80% of the world’s global capacity for certain chips over the past two years. “The process of designing and building chips has become the most technical and sophisticated manufacturing process in human history,” Raimondo said. “And the brutal truth is that, without manufacturing strength in the U.S., and the innovation that flows from it, we are at a clear disadvantage in the race to invent and commercialize future generations of technology.” But vulnerability can spark opportunity. Raimondo used her speech to share the goals of the CHIPS and Science Act, a new law that will provide tens of billions of dollars in funding for U.S. semiconductor manufacturing. But as Raimondo outlined, the plan is to think much bigger than “build a few new fabs, and call it a day.” Instead, the Biden administration is aiming is to propel the United States to become the premier place in the world for the making of semiconductors, a central location where chips can be invented, designed, manufactured, and even packaged, all with the world’s most advanced technologies. “This combination of technological leadership, supplier diversity, and resiliency does not exist anywhere else in the world today,” Raimondo noted. That incredible environment for semiconductors, combined with a workforce that will be “the gold-standard of the world,” will not only incentivize companies to move to the U.S, it will almost force them to, setting the groundwork for an even larger revitalization of U.S. manufacturing, Raimondo said. All that starts with the CHIPS Act. The Commerce Department will launch the first application for CHIPS Act funding next week, focused on private sector investments to make semiconductors in America, Raimondo said. A big goal will be to create at least two new large-scale cluster semiconductor fabs in the United States, which will have the capability to take chips from concept to creation through both manufacturing and research. “CHIPS for America is intended to spur private capital investment at every stage, not replace it. For us to achieve meet this mission, we need the private sector to invest with us, using our $50 billion of public investment to crowd in at least $500 billion in additional funding for manufacturing and R&D,” Raimondo said. “We’re laying a foundation for American business to do what it does best: innovate, scale, and compete.” ... “The CHIPS and Science Act—paired with the Bipartisan Infrastructure Law and Inflation Reduction Act—is a once-in-a-generation opportunity to fuel a manufacturing renaissance,” he said. For her part, Raimondo seemed confident that the United States will get the job done. “We can out-compete and out-innovate anyone in the world,” she said.
We’re seeing again why it’s important to have good infrastructure and planning. The recent bills are good but we need even more especially replacement and upgrading of existing infrastructure.
I said it at the beginning of this thread and reading through many of the comments both from clutchfans and others that Texas’ infrastructure issues will catch up to it. While Texas has grown greatly recently it’s clear its infrastructure isn’t up to to it. Low taxes and lack of regulation are great for business but who wants to keep on living and working in a place that frequently floods and even a moderate rain storm now could knock out power.
We've been through several flooding events in the past 20 years, electricity has gone out a few times as well, and that sure as hell doesn't seem to be stopping growth and our projected numbers up to 2040 is that we're going to continue growing. As long as it continues to be relatively cheap to live here, people will continue to come and stay. There is a lot of investment in our current infrastructure (drainage, sewer, roads, water) on going but still have ways to catch up due to several decades of neglect and no investment. My hope is that something is done about the electricity but I imagine seeing an even bigger growth in generators. Let's face it, people will think with their checking account.
There is a balance. Too much regulation and taxes, and the economy suffers. Too lax regulation and low taxes, and the economy suffers. Yes, the economy suffers. The idea that no regulation and low taxes equal the best possible economy is wrongheaded. Not so different from an environment where there are no guardrails for security and fraud (business do not invest in that environment), when you don't invest in community, infrastructure, and sensible regulation (to at least some reasonable standard), the economy suffers from natural (and man-made) disasters. It costs billions to recover and billions in lost revenues from businesses that are shut down. The hard job is finding that balance.
according to The Construction Finanical Mgmt Association , Biden's $1-Trillion infrastructure bill represents ~~ 1.27% of GDP, as compared to the 1.4% of infrastructure spendings under FDR, in the 1930s. 80-90 years apart would make Biden's bill a once-in-3-generations opportunity
Not only that…. The amount of toll roads Texas has built instead of funding it using bonds is just crazy. Owning a car and commuting has gotten considerably more expensive in Texas since pretty much every new highway expansion or new highway is a tollroad or has a toll road component. Meanwhile Texas has a pretty hefty rainy day fund and has skirted paying for repeated natural disasters.
