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Electronic Components

Chips Act prompts investment in the industry

Chips Act prompts investment in the industry

Since the introduction of the CHIPS Act in early 2020, the US has seen an increase in private investment.

Companies in the semiconductor industry have announced a large quantity of projects to increase the manufacturing capacity across the states. Some of these projects were even underway before the Act was put into law, relying on the eventual introduction of the Act and the accompanying funding.

The varied projects include ones to build, expand or upgrade fabs specialising in different areas. There are also plans for new semiconductor equipment facilities and factories to produce materials for semiconductors.

Thanks to this early action, some projects could be finished as early as 2024. Others, announced after the implementation of the CHIPS Act, will begin construction this year.

What happens next

There are plans for at least 23 new fabs, and 9 expansions to existing facilities. This, in turn, has encouraged investment in equipment and material facilities. Altogether, both fabs and all the surrounding investment, is estimated to come to almost $200 billion.

Alongside the vast amount of investment to be spent on the industry, it could also create around 40,000 jobs. According to a 2021 study, this number of jobs could have a much bigger impact. For every direct employee of the semiconductor industry, an additional 5.7 jobs are supported in the wider economy.

Show me the money

The CHIPS Act provides $280 billion in funding over the next 10 years. Most of this is for scientific R&D and commercialization.

$2 billion of funding will be allocated the Department of Defense, funding research, fabrication and training. Another $500 million will go to the Department of State to work with foreign government partners on supply chain security.

For the last few years the risks of sourcing chips from overseas have been shown in all their glory. Compared to the 37% of global semiconductors made in the US in the 90s, only 12% are made here now. The CHIPS Act was introduced to reduce the reliance on other countries, and boost commerce and employment domestically.

Despite this, some experts say that the CHIPS Act may not be able to cover the costs it intends to. GS Research said due to the higher production costs in the US vs Taiwan, the funding may not cover it. Although they expect the Act will increase production, they do not believe it will make a difference of more than 1% to the US share of global chip capacity.

No matter the cost

There is a lot of uncertainty in the electronics market right now, but you can rely on Lantek. We have a team of experts who can help you source any parts you’re looking for. With our years of experience we are always one step ahead of our competition. We can’t wait to show you what we can do for you, contact us today on 1-973-579-8100 or at sales@lantekcorp.com.

Categories
Electronic Components Supply Chain

UK Government asks for views on supply chain security

UK Government asks for views on supply chain security

UK’s Department for Digital, Culture, Media and Sport (DCMS) has called for views on security measures across digital supply chains and IT services, including data processing, infrastructure management and supplier assurance.

The call comes as more organizations move their operations online and pivot to digital business models. A few obvious examples are retailers moving online and car manufacturers offering cars on subscription, which may kill showroom sales.

As organizations increasingly move their operations online, it’s a given that digital supply chains and third-party IT service operators will become more vital. The government wants to take a leadership role in helping organizations make the transition.

Call for Views

The Call for Views focuses on two parts:

Part 1 seeks input on how organizations across the market manage supply chain cyber risk and how government intervention would help.

Part 2 seeks input on the suitability of a proposed framework for Managed Service Provider security and how it can be appropriately implemented.

You can read more about the Call for Views here.

The information submitted by organizations will be used to develop new policy solutions that support organizations in cyber risk management.

However, responses are not limited to organizations and all those that have an interest in supply chain cyber risk management are being asked to provide their opinions.

Security comes first

The government wants to ensure that organizations can properly review the cyber security risks coming from suppliers and their supply chains.

The National Cyber Security Centre (NCSC) already offers a raft of support to help organizations assess the security risks of their suppliers, however the government wants to go further and is asking for views from organizations on this matter.

They have requested views on existing guidance for supply chain risk cyber management and they are testing a new security framework with some firms. This is a managed service provider framework, which requires Managed Service Providers to meet the current Cyber Assessment Framework so feedback can be collected.  

Want to take part?

If you wish to take part in the Call for Views, you can complete the online survey. If you are unable to complete the survey, you can email your response to cyber-review@dcms.gov.uk or send it via post to the following address:

Call for views on supply chain cyber security

Cyber Resilience Team – 4/47

DCMS

100 Parliament Street

London

SW1A 2BQ