The Biden administration has made a significant move this week by awarding $504 million to 12 regions in states ranging from New Mexico to New Hampshire. The objective behind this initiative is to transform overlooked communities into flourishing “tech hubs.”
These grants mark a crucial effort to decentralize the production of critical technology from traditional epicenters like Silicon Valley, spreading high-paying job opportunities in industries such as computer chips, quantum computing, and personalized health care.
Each region is estimated to receive anywhere from around $20 million to over $50 million. This tech hubs program is a part of the 2022 CHIPS and Science Act, designed to enhance domestic semiconductor production and invest in scientific research.
However, despite the buzz surrounding these grants, the numbers paint a different picture. While Congress has authorized $10 billion for the program over five years, only a small portion — $541 million through the latest awards — has been allocated so far. Semiconductor production has also encountered challenges post the law’s enactment, including delays in the construction and completion of chip factories.
John Lettieri, the chief executive of the Economic Innovation Group, expressed skepticism about the immediate impact of these recent awards.
“We’re not likely to witness major technological breakthroughs solely from this half-billion dollars,” Mr. Lettieri commented.
Commerce Secretary Gina M. Raimondo stated, “With more funding, we will be able to make additional awards, catalyzing more tech advancements, regional growth, and the creation of numerous well-paying jobs.”
