In efforts to curb the semiconductor shortage and jumpstart the technology industry, the United States Congress passed legislation that includes funding for manufacturing semiconductors. Partially in response to China’s increasing economic influence and partially in response to the semiconductor shortage, the CHIPS Act could be just what industry leaders need to kickstart the manufacturing of these important devices.
Many industry leaders have lobbied for Congress to take action, industry leaders like Intel’s CEO, Pat Gelsinger, as it has been predicted that the chip shortage could go well into 2024 if nothing is done about it. Intel was in the process of building its third semiconductor factory in the state of Ohio, but its progress has stalled due to delays in the legislation of the CHIPS act. The initial price tag associated with this factory is about $20 billion with costs exceeding $100 billion over the next decade.
The CHIPS Act is an acronym that stands for Creating Helpful Incentives to Produce Semiconductors. It contains $280 billion, of which $52 billion will be allocated to support the domestic production of semiconductors. It is suspected that this investment in manufacturing could potentially lower the costs of devices that depend on them.
Semiconductors are used to power many of the business-critical technologies used by both enterprises and small businesses alike. They are used in workstations, server units, appliances, and even cars. It’s safe to say that this funding is a necessary step toward resolving the ongoing supply chain issues that have plagued businesses since the start of the pandemic.
If you have tried to purchase technology for your business, you know that right now it can be particularly difficult to get the technology you need, when you need it. The issues with the semiconductor shortage have had profound impacts on the way companies acquire important hardware, but this doesn’t mean that you have to suffer the consequences of it. If you’re sick and tired of searching for the right tools for the job, then The Connection, Inc can help you out.
With our technicians on your side, you can get the most value out of your current solutions while also focusing on your needs in both the near and distant future. We can build a technology roadmap that accounts for issues like the current supply chain challenges so you can move forward with a sense of direction.
To learn more about what we can do for your business, contact us at (732) 291-5938.