5 ways CHIPS and science law can help small businesses

Author: Rhett Battle

Nearly 18 months after the CHIPS and Science Act was signed into law, we are now seeing how it drives innovation and creates opportunities for small businesses regardless of their location. The law aims to boost domestic semiconductor research and manufacturing in the United States, creating more than 40 new semiconductor ecosystem projects, nearly $200 billion in private investment across 16 states, and hundreds of thousands of direct investments. and promoted indirect employment.

On February 26, U.S. Secretary of Commerce Gina Raimondo provided an update on CHIPS and science law in a speech at the Center for Strategic and International Studies, stating: About two things. First, whether we can build a reliable and resilient semiconductor industry that advances America’s technological leadership. And secondly, are we good stewards of taxpayers’ money? One year later, I’m happy to report that we’re on track to accomplish both. ”

All of these efforts benefit Main Streets across America in different ways. Below are five examples.

1. Creating greater investment opportunities

The legislation creates significant incentives for private investment by allocating approximately $280 billion in spending over the next 10 years to a number of activities and tax credits. This builds on the White House’s investment plan for the United States, which aims to improve America’s economic capacity and strength in key areas of the economy. Brian Dees, former director of the National Economic Council, said in a past interview: Become a world leader in key industries of the future, whether it’s semiconductors or clean energy technology, and build momentum for a new recovery in U.S. manufacturing, which is already leading to the largest increase in manufacturing jobs in 30 years. Contribute to ”

2. Support for semiconductor development

Since the CHIPS and Science Act was signed, the Department of Commerce has announced $39 billion in funding to support facility construction, expansion, and modernization projects related to semiconductor development. Since then, the agency has received more than 600 expressions of interest from interested businesses in 42 states. Meanwhile, more than 50 community colleges in 19 states have announced new or expanded semiconductor curricula, which should provide a new talent pipeline for these projects. This development, along with other initiatives in the bill, will create more opportunities for small and growing businesses. Raimondo said during the discussion portion of the session that small grants will also be made available to small and medium-sized businesses for the development of innovative materials and other initiatives.

3. Launching the Tech Hubs program

Another program created by CHIPS and Science Law is the Regional Innovation and Technology Hub (Tech Hub) program. It is designed to support small businesses across the country by supporting the development and growth of innovative industries. The Department of Commerce’s Economic Development Administration (EDA) has designated 31 communities across the country as “Tech Hubs,” a consortium of higher education, government, industry, economic development, workforce, and other innovation-focused organizations. These organizations span 32 states and Puerto Rico, six including tribal governments, four headquartered in sparsely populated states, and four including coal communities. This type of targeted investment in local communities can help open up more opportunities for small businesses, no matter where they are located.

4. Developing a recompetition pilot program

Another initiative through EDA aimed at changing the course of the economy for distressed communities across the country is the Distressed Areas Recompetition Pilot Program. The program, which will cost $1 billion over the next five years, will target regions where employment for prime-age workers (ages 25 to 54) is significantly below the national average. We then provide large-scale, flexible investments to those local communities, allowing them to design and fund initiatives that meet their unique needs.

5. Collaboration with downstream suppliers

One of the key aspects of the CHIPS and Science Act is that it is intended for collaboration between the public and private sectors, as evidenced by the investment commitments from the public and private sectors. These efforts also help downstream suppliers. For example, Micron plans to generate up to $100 billion over the next 20-plus years through initiatives such as building megafabs, creating community investment funds, and diversifying construction projects to include minorities, veterans, and minorities. I plan to invest USD. and women-run businesses.

Secretary Raimondo called for providing the infrastructure for small businesses and entrepreneurs to innovate, saying, “If CHIPS for America is successful – and I believe it is – by the end of the decade, the United States will… We will become the top of the world,” he concluded his speech. New chip architectures can be invented in our new labs, designed for any end use, manufactured at scale by well-paid American workers, and packaged with the most advanced technology in the country. We are the only country in the world that can. ”

If you are a small business or an aspiring entrepreneur, there are still opportunities to access CHIPS and Science Law. Visit Build.gov to see if something is right for you.