US to launch $5 billion research hub to stay ahead in the chip race

President Joe Biden’s administration plans to launch a $5 billion semiconductor research consortium to bolster chip design and hardware innovation in the US and counter China’s efforts to capture the cutting edge of the industry.

Officials on Friday are set to formally establish the National Semiconductor Technology Center, or NSTC, which marks the second major research and development investment from the 2022 Chips Act following a $3 billion advanced packaging initiative.

The consortium plans to invest hundreds of millions of dollars into workforce development and intends to open funding applications in early March for research grants, Commerce Undersecretary for Standards and Technology Dr Laurie E. Locascio said in an interview with Bloomberg News.