The semiconductor shortage, which has paralyzed many different industries, has several experts encouraging the U.S. to address this seemingly critical weak point by increasing domestic chip funding. While President Biden has promoted a $50 billion investment into the industry, his current proposal still remains in Congress. Now, a new study shows just what kind of impact that funding could have.
The study, performed by the Semiconductor Industry Association and Oxford Economic, found that a $50 billion federal investment would create 185,000 temporary America jobs, along with adding $25 billion to the American economy each year until 2026 when new fabs are built. According to the study, semiconductor production currently employs 227,000 people across 49 states, supports 1.6 million jobs, and surpassed a total impact of $246 billion on the U.S. economy.
SIA Board Chair and Qorvo CEO Bob Bruggeworth said in a statement that “Leaders in Washington can spur greater U.S. economic growth and job creation, while also strengthening America’s ship supply chains, by investing boldly in domestic manufacturing incentives and research initiatives.” In addition to the temporary job additions, the funding would create 280,000 permanent jobs beyond 2026, with 42,000 being directly in the semiconductor field.
Earlier this year, Congress did pass what was meant to be the genesis of new funding for the semiconductor industry. The CHIPS for America Act, which was passed in January, calls for $50 billion in federal funding for domestic chip research, design, and production, but it has remained unfunded over disagreements relating to the budgeting of such funds. However, Senate Majority Leader Chuck Schumer announced on Tuesday that $52 billion in emergency funding for chip support will be included in the U.S. Innovation and Competition Act, previously known as the Endless Frontier Act.