WASHINGTON (AP) — Comprehensive legislation of 2022 touted by President Joe Biden “Significantly increase production” of semiconductors in the United States as a way to revive U.S. semiconductor manufacturing and reduce dependence on foreign computer chips. But it will cost a lot of money and may not yield the best returns, concludes a report released Wednesday by a Washington economic think tank.
Researchers at the Peterson Institute for International Economics calculated that: $280 Billion CHIPS and Science Law Once the chip plant is operational in the U.S., it will create approximately 93,000 construction jobs and 43,000 permanent jobs once it is operational. But the government subsidies behind the expected semiconductor manufacturing boom will cost taxpayers about $185,000 a year for each job created, which is more than the average annual salary of a U.S. semiconductor worker. , the Peterson report found.
Researchers Gary Hufbauer and Megan Hogan wrote that “increasing production may not provide the highest safety for the cost.”
In passing the CHIPS Act, Peterson’s report Congress “failed to consider alternatives” Spent billions of dollars to ensure sufficient chip supply for the United States. Other options include creating a chip stockpile run by the Federal Emergency Management Agency and providing financial incentives for U.S. chip users and foreign chip manufacturers to hold more semiconductor inventories in the United States. etc. could be considered.
Biden promoted Congress passes the CHIPS Act After semiconductor There was a shortage of supplies due to the lockdown due to the new coronavirus infection.. Production was interrupted due to shortages car and other products. The Biden administration also views expanding production of U.S. chips as a national security issue. That’s because it would reduce U.S. dependence on foreign imports of chips used by the military and private companies.
The U.S. share of global chip production capacity, measured by volume rather than value, has fallen from 37% in 1990 to just 10% in 2022, according to a study by Boston Consulting Group and the Semiconductor Industry Association. .
Policymakers say U.S. industry relies heavily on chips made in Taiwan, and that supply could be compromised if China launches a military offensive aimed at politically integrating the autonomous island with mainland China. We are wary of the possibility that this may be threatened. Taiwan Semiconductor Manufacturing Co., a major chip supplier to companies like Apple and Qualcomm, is investing heavily. chip factory in arizona.
The CHIPS Act also aims to increase the United States’ share of the world’s advanced chips from zero now to 20% by 2030. But Peterson’s report argued that such a leap would require additional government subsidies and overcoming shortages of skilled labor and electricity. He also noted that South Korea and Taiwan offer generous tax credits to their semiconductor giants to protect their market leadership. As for whether the U.S. will be able to reach that 20% goal, the Peterson researchers conclude that “probably.”
It is unclear whether the incoming Trump administration will repeal or change the CHIPS Act. During the campaign, President-elect Donald Trump argued that imposing tariffs on foreign chips, rather than subsidies to encourage American production, would have been more effective in attracting semiconductor factories to the United States. was making a point.
But Peterson researchers noted that European Union tariffs have prevented European chip production from recovering in the past. “There is no compelling reason that comparable tariffs would be more successful for the United States,” they wrote.
