$504M in Federal Funding for Semiconductor Manufacturing and Tech Infrastructure
Twelve tech hubs across the country are set to receive a total of $500 million in federal grants aimed at expanding research in artificial intelligence, semiconductor manufacturing, and clean energy.
The funding, part of the CHIPS and Science Act of 2022, is among the initial disbursements from the $280 billion allocated to promote regional economic growth and reduce reliance on foreign tech suppliers, according to the U.S. Economic Development Administration.
In many areas, the grants will support the development of new manufacturing facilities or the enhancement of existing infrastructure. The initiative aims to diversify the geographic distribution of tech-related economic activity across the nation.
One recipient, the South Florida ClimateReady Tech Hub, will receive $19 million to advance clean cement and concrete technologies, particularly in low-lying and extreme weather-prone areas. Florida, the state most vulnerable to climate change, frequently faces billion-dollar hurricanes, historic flash floods, and rising property insurance costs.
The New York Semiconductor Manufacturing and Research Technology Innovation Corridor will receive $40 million to establish a regional semiconductor cluster, including expanding the supply chain network and semiconductor R&D capabilities.
In Colorado and New Mexico, $41 million will be invested in constructing open-access quantum labs. Meanwhile, South Carolina and Georgia will receive $45 million to enhance clean energy infrastructure, including upgrades to an existing grid testing facility and the development of a full-scale multimodal grid operations center.
In October, the Biden administration designated 31 communities as regional tech hubs eligible for the $500 million fund. The EDA then selected 12 projects for the initial round of funding from more than 370 applications across 49 states and four territories.
The CHIPS Act authorizes $10 billion for the program over five years, with $541 million appropriated to the EDA thus far. The Act has already spurred the construction of several multibillion-dollar semiconductor manufacturing plants, doubling factory construction spending last year, with manufacturing making up about 13% of nongovernment construction as of June 2023.
Read full story on BISNOW
Comments