US to Tap $39 Billion Semiconductor Funds for Chip Supply Chain

The US Commerce Department will begin taking applications from suppliers to the semiconductor industry to share in the $39 billion Congress provided to boost American chip manufacturing, Secretary Gina Raimondo said Thursday.

The risks from concentration in the semiconductor supply chain became apparent during the coronavirus pandemic, when disruptions in global trade contributed to chip shortages that idled car manufacturing and fueled inflation, Raimondo said. To address that vulnerability, Raimondo said some of the funds for semiconductor manufacturing from the Chips and Science Act will go to suppliers.

“We can have as many fabs as we want, but the reality ...