Real Opportunity with the CHIPS Initiative

In August of 2022, Congress passed the CHIPS and Science Act of 2022 (“Creating Helpful Incentives to Produce Semiconductors”) to strengthen and incentivize domestic semiconductor manufacturing, design, and research. This is a tremendous opportunity for Minnesota’s semiconductor industry – which is stronger than you might think. The Act invests $280B over the next 10 years to bolster capacity, catalyze R&D, and create regional high-tech hubs, as well as a bigger, more inclusive STEM workforce. I’m writing about this today because Greater MSP has been building a coalition within Minnesota’s semiconductor industry to ensure these companies are prepared to apply for funds to strengthen Minnesota’s position in this sector. Your Chamber has a small part to play in this as well! If you want to know more if your organization participates in this sector, or should you be interested in career opportunities therein, read on!
 
Most specifically: the US Department of Commerce will oversee $50B in investments to expand domestic manufacturing of mature and advanced semiconductors. Here in the metro, we have several significant semiconductor manufacturers, the largest of which are Collins Aerospace, Honeywell, Polar Semiconductor, Raytheon Technologies, Seagate Technology, and Skywater Technology.   
 
Why is this important? Semiconductors are essential components in all electronics, powering everything from the chips in our smartphones to our cars to medical devices. They enable the key technologies that drive the future economy and our national security – AI, 5G/6G, microelectronics, nanotechnology, quantum computing, cloud services, directed energy, and more.
 
According to McKinsey Research, the share of modern semiconductor manufacturing capacity located in the U.S. has eroded from 37% in 1990 to 12% today. At the same time, China has grown to be the world’s second-largest market for semiconductor equipment, behind Taiwan and South Korea. This gap has exposed real vulnerabilities to our economy, national security, and technology leadership position. Here in Minnesota, we have several direct manufacturers and innumerable companies within this supply chain that provide parts and components (the most recognizable of which is DigiKey in Thief River Falls). A consortium will help these companies access funds, expand their work, and introduce this sector to more next-generation leaders.
 
In addition to Greater MSP’s work, earlier this year the UofM launched a Semiconductor Manufacturing Consortium. This initiative is aimed at upskilling Minnesota’s technical workforce for careers in semiconductor manufacturing.
 
And your Chamber is proud to be doing our part. To support the talent development needs of this sector, we are creating a “Semiconductor Alley” within our Career Connect Day on October 17, and some of the companies listed above (and more) will be participating!
 
Here is an informative review of the CHIPS Act provided by McKinsey, with an overview of the funding.
 
Here is a link to our Career Connect Day on October 17, should you want more information.
 
Should you be interested in participating in the Greater MSP Semiconductor Consortium, you can reach out directly to Amanda Taylor, Research Director, at [email protected].  
 
See you in the trenches,
B