$504 million
The Biden administration this week awarded $504 million to 12 regions in states from New Mexico to New Hampshire with the aim of transforming neglected communities into “tech hubs.”
The subsidies are part of a push to spread the production of crucial technology beyond epicenters like Silicon Valley and coastal areas, creating more high-paying jobs in sectors such as computer chips, quantum computing and personalized health care.
The estimated allocation for each region ranges from about $20 million to more than $50 million. The tech hubs program is part of the CHIPS and Science Act of 2022, which aims to boost domestic semiconductor manufacturing and funding for scientific research.
But the announcement of the subsidies shows how little money has been disbursed. Congress approved $10 billion for the program over five years, but only a small portion — $541 million in the latest awards — has actually been allocated so far. More broadly, semiconductor manufacturing has faced challenges since the law went into effect, including delays in the construction and completion of chip factories.
According to John Lettieri, director of the think tank Economic Innovation Group, it is unlikely that the recent prices will have much impact on their own.
“It is not likely that we will achieve major technological breakthroughs as a result of this half a billion dollars,” Mr. Lettieri said.
In a statement, Commerce Secretary Gina M. Raimondo said: “With more funding, we will deliver more awards, leading to more technological advancement, more regional growth and many more good-paying jobs.”
