The administration of US President Joe Biden announced it would invest $5 billion into semiconductor-related R&D, including a plan to establish the National Semiconductor Technology Centre (NSTC).

Government statements explained the NSTC will cover the design, prototyping and piloting of the latest semiconductor technologies. The public-private consortium will use shared facilities and expertise, providing access to key capabilities alongside developing and sustaining a semiconductor workforce.

The US Department of Commerce (DoC) explained the NSTC will also “lower the barriers to participation in semiconductor R&D to create a more vibrant national ecosystem”.

Funding for the latest semiconductor-related investment was carved out of the CHIPS and Science Act, which set aside $52 billion in funding to boost the domestic semiconductor industry as the US seeks to better compete against China and address a global semiconductor shortage.

In addition to the NSTC, the legislation provides a total of $11 billion in funding to advance programmes covering manufacturing, chip metrology and a national manufacturing institute.

Secretary of Commerce Gina Raimondo stated with “strategic investments in R&D complementing targeted industry incentives, CHIPS for America will not only bring semiconductor manufacturing back to the US, it will keep it here for good”.

Reuters reported the DoC plans to announce several large awards to fund chip manufacturing over the coming months.