This week, the Biden administration awarded $504 million to 12 regions in states from New Mexico to New Hampshire with the goal of transforming forgotten communities into “tech hubs.”
The grants reflect an effort to spread critical technology production beyond epicenters like Silicon Valley and coastal regions, bringing with it more well-paying jobs in industries like computer chips, quantum computing and personalized health care.
The estimated grant amount for each region ranges from about $20 million to more than $50 million. The technology hub program is part of the CHIPS and Science Act of 2022, which aims to boost domestic semiconductor production and funding for scientific research.
But the announcement of the grants shows how little money has been allocated. Congress authorized $10 billion for the program over five years, but only a small fraction of it has been allocated so far ($541 million with the latest grants). More broadly, semiconductor production has faced difficulties since the law was enacted, including delays in building and completing chip factories.
According to John Lettieri, executive director of the Economic Innovation Group, a think tank, the recent awards on their own are unlikely to have much of an impact.
“We’re not likely to make any major technological breakthroughs as a result of this $500 million,” Lettieri said.
In a statement, Commerce Secretary Gina M. Raimondo said, “With more funding, we will award more prizes, leading to more technological advancements, more regional growth, and many more good-paying jobs.”
