• Posted on Oct 25, 2022

The presentation of the CHIPS Act 2022 is just the beginning of the United States working toward a more robust technological and industrial strategy. More specifically, the CHIPS and Science Act of 2022 aims to improve the American supply chain of semiconductors and various specialized parts to stay at the forefront of creating technology for the future.

Even with this brief explanation, it’s understandable if you still have plenty of questions, such as “what is the Chips Act?”. If so, continue reading to explore how this implementation impacts American workers and supply chain goals and builds a more progressive approach to scientific and technological development.

What is the CHIPS ACT?

CHIPS is an acronym for “creating helpful incentives to produce semiconductors.” The Senate voted on the CHIPS Act 2022 in July of 2022, with a result of 64-33 in the Senate. These CHIPS Act vote results made the CHIPS Act a bipartisan law put into effect by the Biden-Harris administration.

The act allocates around $280 billion in funding for sciences, research, and technology manufacturing.

However, you should note that the CHIPS Act accomplishes much more than just creating semiconductors. In addition to helping develop incentives for computer parts manufacturing, this act also increases funding for research opportunities. Some benefiting parties include the Department of Energy, NASA, and the National Science Foundation.

What Exactly Is a Semiconductor?

The main goal of the CHIPS Act is to promote and encourage the manufacturing of semiconductor chips within the United States. In simple terms, a semiconductor is a material with specific electrical properties used as a component in properly working electronic devices. Every technological device uses semiconductors to function.

There are different types of semiconductors, including but not limited to:

  • Standard
  • Complex
  • Memory
  • Microprocessors
  • Analog
  • Mixed semiconductors
  • Legacy
  • Graphics cards

Unfortunately, the United States produces less than 10% of all semiconductor chips made worldwide, even with all these different types. The CHIPS Act 2022 hopes to flip this narrative by encouraging American manufacturers to make more semiconductor chips.

What Is Semiconductors’ Purpose?

Semiconductors are a crucial component of microchips, which are part of basically everything one can imagine. They’re the foundation of almost all of today’s technology, from cell phones to microwaves and security cameras. So, it’s safe to say the semiconductor is a modern invention crucial to society.

What Will This Act Do?

The CHIPS Act provides funding to mitigate the current shortages of semiconductor chips, encourage chip expansion for domestic creation, and essentially be at the forefront of technological advances and production. To create less supply chain demand and reliance on foreign countries, America must stop buying telecom equipment and make it at home.

The CHIPS act aims to do the above and keep inflation down by providing domestic companies with high-ticket incentives, tax credits, and research and development efforts to make semiconductor chips for electronics, automobiles, and even military-grade weapons. Ideally, American manufacturers will see this as an opportunity and will shift to semiconductor production.

Are the Effects Immediate?

Unfortunately, it’s unlikely that the United States can quickly create semiconductor chips. Since semiconductor chip factories take a while to build, and the process of making them is complex, the benefits of this act will likely be more apparent in the future.

However, it’s essential to remember that once the fabrication factories produce chips, this will streamline the entire supply chain for the American people as they will become less reliant on outsourcing foreign semiconductor chips.

Overarching Goals of CHIPS & Science Act

While producing semiconductors is a long-term goal of the CHIPS Act, there are plenty of other noteworthy shifts and goals it aims to achieve. Continue reading for an overview of these impressive goals.

Take the Lead in Semiconductor Manufacturing

An overarching goal for the CHIPS Act 2022 is to make America a leader in manufacturing semiconductor chips. To do so, the act provides $52.7 billion in manufacturing incentives, research, workforce training, and incentives for building military and auto chips. This way, the United States gradually shifts toward securing a domestic supply of chips and creating jobs within these technological environments to sell telecom equipment.

Widen the STEM Opportunities For Every Citizen

STEM, or science, technology, engineering, and mathematics, is an excellent career field for prospective students who handle the previously mentioned technologies.

The CHIPS Act hopes to provide education and workforce development programs to communities everywhere. These STEM training programs and investments will also expand into the classroom via academic programs across kindergarten into graduate-level educational opportunities.

The goal is to give every American the chance to hold a STEM career, bolstering diversity levels and improving the workforce with these highly-skilled workers.

Work to Expand Every Area of Wireless Technology

Another goal of the CHIPS and Science Act is to expand wireless technology across all platforms. This means enhanced safety for applications like cloud systems, migrating domestic businesses to 5G, improved radio networks, and advanced communications via private networks.

Support Widespread Levels of Research and Development

A final goal of the CHIPS and Science Act 2022 is to broadly expand research and development within the semiconductor and telecommunications fields. Earmarked funds create the opportunity for new technology and research and development programs with the National Science Foundation to commercialize any findings, biotechnologies, and advanced computing technologies.

On the local level, this legislation invests $10 billion in technology centers across the continental United States. These centers will bring local government, universities, unions, communities, and businesses under one roof. These partnerships work to create more jobs and potential for manufacturing within the STEM field.

The Best Place to Source Your Telecommunications Equipment Now

Now that the answer to the question, “what is the CHIPS Act” is clear, you’re likely wondering where to source your telecom equipment until these changes take effect.

If you’re looking to buy wireless network equipment, eNetwork Supply sells wireless network equipment like modems, routers, wireless devices, microprocessors, and semiconductor chips at affordable prices. Whatever your technology needs, we’ve got you covered.

Call the eNetwork Supply team at (312) 283- 5983 to cover your semiconductor and telemarketing needs today!