The Biden administration this week awarded $504 million to 12 areas in states from New Mexico to New Hampshire with the purpose of remodeling neglected communities into “tech hubs.”
The grants mirror an effort to unfold the manufacturing of essential expertise past epicenters like Silicon Valley and coastal areas, bringing with them extra high-paying jobs in industries like laptop chips, quantum computing and customized well being care.
The estimated award for every area ranges from round $20 million to greater than $50 million. The tech hubs program is a part of the 2022 CHIPS and Science Act, which goals to spice up the home manufacturing of semiconductors and funding for scientific analysis.
But the announcement of the grants exhibits simply how little cash has been given out. Congress approved $10 billion for this system over 5 years, however solely a small fraction — $541 million with the newest awards — has truly been appropriated up to now. More broadly, semiconductor manufacturing has confronted challenges for the reason that regulation’s enactment, together with delays within the constructing and ending of chip factories.
According to John Lettieri, the chief government of the Economic Innovation Group, a suppose tank, the current awards have been unlikely to make a huge effect by themselves.
“We’re not prone to get main technological breakthroughs on account of this half-billion {dollars},” Mr. Lettieri mentioned.
In an announcement, Gina M. Raimondo, the Commerce secretary, mentioned, “With extra funding, we are going to make extra awards, resulting in extra tech developments, extra regional development and lots of extra good-paying jobs.”
