The Biden administration this week awarded $504 million to 12 areas in states from New Mexico to New Hampshire with the aim of reworking missed communities into “tech hubs.”
The grants mirror an effort to unfold the manufacturing of essential know-how 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.
However the announcement of the grants exhibits simply how little cash has been given out. Congress licensed $10 billion for this system over 5 years, however solely a small fraction — $541 million with the most recent awards — has truly been appropriated to date. Extra broadly, semiconductor manufacturing has confronted challenges because the regulation’s enactment, together with delays within the constructing and ending of chip factories.
In response to John Lettieri, the chief govt of the Financial Innovation Group, a suppose tank, the current awards had been unlikely to make a huge effect by themselves.
“We’re not prone to get main technological breakthroughs because of this half-billion {dollars},” Mr. Lettieri stated.
In a press release, Gina M. Raimondo, the Commerce secretary, stated, “With extra funding, we are going to make extra awards, resulting in extra tech developments, extra regional progress and plenty of extra good-paying jobs.”
