Subscribe to Updates

    Get the latest creative news from WorthyClue about politics, business and sports

    What's Hot

    You’ve Seen Cousin Greg as Tim Riggins; How About Jessica Biel as Don Draper? – Go Fug Yourself

    August 18, 2022

    Dodge previews the Charger Daytona SRT Concept, an EV that’s clinging to the past

    August 18, 2022

    How to Make the 32 Hour Workweek Work for You

    August 18, 2022
    Facebook Twitter Instagram
    • Home
    • About Us
    • Contact Us
    • Privacy Policy
    Facebook Twitter Instagram
    WorthyClueWorthyClue
    • Home
    • Business
    • Boxing
    • Gaming
    • Politics
    • Soccer
    • Wrestling
    • Technology
    WorthyClueWorthyClue
    Home»Technology»US Senate approves $52 billion for chipmakers—but not designers
    Technology

    US Senate approves $52 billion for chipmakers—but not designers

    wo1minBy wo1minJuly 27, 2022No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Share
    Facebook Twitter LinkedIn WhatsApp Pinterest Email


    The US Senate, by a vote of 64-33, has approved the CHIPS Act, a bill that would provide $52 billion in assistance funds for semiconductor manufacturers looking to make products in the US, along with a 25% tax credit for investment in the industry, as well as research and workforce development grants.

    The bill still needs the approval of the US House of Representatives and President Biden, a vocal supporter of the legislation, to become law.

    While $2 billion of the direct assistance funds is already earmarked for legacy programs—specifically, technologies that the Department of Defense wants to produce within the US—the other $50 billion is generally available for the development of additional domestic silicon manufacturing in the country.

    The big winners, should the CHIPS Act be signed into law, will be companies like Intel, who either already have chip fabrication facilities in the US or are planning to build them—but other chip companies, particularly those that take a lead role in chip design but don’t manufacture products themselves, warn that the bill doesn’t go far enough in helping the US silicon industry.

    Lawmakers urged to aid chip designers as well

    The CEO of wireless chip design company EdgeQ, Vinay Ravuri, said in a statement that the US risks losing its edge in innovation by not providing funding for designers and other fabless silicon businesses.

    “The CHIPS [Act] addresses a scaling issue. But it does not address ingenuity,” he said. “To remain relevant, we need to invest in cutting-edge companies, especially those pushing to disrupt and elevate the industry in new frontiers, like 5G and AI.”

    Gartner Research vice president and analyst Gaurav Gupta said that EdgeQ is far from the only company irked by the bill’s exclusive focus on the manufacturing end of the silicon industry.

    “If you talk to folks Iin the industry, you’ll get that view that it’s not going to benefit everyone equally,” he said.

    Nevertheless, said Gupta, the CHIPS Act remains a game-changer for chipmaking in the US, making it far more competitive with semiconductor manufacturing overseas, which generally has far lower production costs.

    “This gives OEMs and fabless companies the option to buy devices from here,” he said. “And the reason is that these companies won’t come here unless there’s motivation through the CHIPS Act, because there’s obviously a cost gap between running a fab in Asia and running one here.”

    Chip revenue forecast to decline

    The CHIPS Act’s probable passage comes at the right time for the semiconductor industry overall, as new figures released today by Gartner show semiconductor revenue growth slowing sharply over the next 18 months. Global revenue is projected to grow by 7% over the course of 2022, down from a whopping 26% in 2021, and to actually decline by 2.5% in 2023.

    Practice vice president Richard Gordon said that that could be good news for customers, however, as prices may begin to decline and lead time between purchasing and delivery shrinks.

    “The semiconductor market is entering an industry down cycle, which is not new, and has happened many times before,” he said in a statement accompanying the results. “While the consumer space will slow down, semiconductor revenue from the data center market will remain resilient for longer (20% growth in 2022) due to continued cloud infrastructure investment.”

    Copyright © 2022 IDG Communications, Inc.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    wo1min
    • Website

    Related Posts

    Dodge previews the Charger Daytona SRT Concept, an EV that’s clinging to the past

    August 18, 2022

    Apple Card issuer Goldman Sachs ranks first in credit card satisfaction survey | AppleInsider

    August 18, 2022

    You can save $50 on this Xbox Series S bundle at Adorama

    August 18, 2022

    The Dodge Charger EV’s fake exhaust sound is sure to divide muscle car fans

    August 18, 2022

    Streaming beats cable for the first time to claim largest share of TV viewing to date

    August 18, 2022

    Acura Precision EV Concept Previews the Brand’s Electric Future

    August 18, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Don't Miss

    You’ve Seen Cousin Greg as Tim Riggins; How About Jessica Biel as Don Draper? – Go Fug Yourself

    By wo1minAugust 18, 2022

    For the third year in a row, W magazine — as a runup to the…

    Dodge previews the Charger Daytona SRT Concept, an EV that’s clinging to the past

    August 18, 2022

    How to Make the 32 Hour Workweek Work for You

    August 18, 2022

    Rohit Sharma is in full favour of ODI cricket

    August 18, 2022
    Our Picks

    You’ve Seen Cousin Greg as Tim Riggins; How About Jessica Biel as Don Draper? – Go Fug Yourself

    August 18, 2022

    Dodge previews the Charger Daytona SRT Concept, an EV that’s clinging to the past

    August 18, 2022

    How to Make the 32 Hour Workweek Work for You

    August 18, 2022

    Rohit Sharma is in full favour of ODI cricket

    August 18, 2022

    Subscribe to Updates

    Get the latest creative news from WorthClue about movies & sports.

    About Us
    About Us

    We are a news website that covers the latest in current affairs, politics, business, sports, entertainment and more. Our team of dedicated journalists strive to bring you the most up-to-date news stories from around the world, so you can stay informed on the topics that matter most to you.

    Our Picks

    You’ve Seen Cousin Greg as Tim Riggins; How About Jessica Biel as Don Draper? – Go Fug Yourself

    August 18, 2022

    Dodge previews the Charger Daytona SRT Concept, an EV that’s clinging to the past

    August 18, 2022

    How to Make the 32 Hour Workweek Work for You

    August 18, 2022
    New Comments
      • Home
      • Contact Us
      • About Us
      • Privacy Policy
      © 2022 WorthyClue. Made WIth ❤️ By Shine Barbhuiya

      Type above and press Enter to search. Press Esc to cancel.