The Biden administration this week awarded $504 million to 12 regions from New Mexico to New Hampshire with the goal of transforming overlooked communities into “tech hubs.”
The grants reflect efforts to spread production of critical technologies beyond epicenters like Silicon Valley and coastal regions, bringing more good-paying jobs to industries like computer chips, quantum computing and personalized medicine.
The estimated awards for each region range from approximately $20 million to more than $50 million. The Tech Hub Program is part of the CHIPS/Science Act of 2022, which aims to expand domestic semiconductor manufacturing and funding for scientific research.
But the grant announcements show just how little funding has been given out: Congress authorized $10 billion over five years for the program, but only a fraction of that has been allocated — $541 million in the latest grants. More broadly, semiconductor manufacturing has faced a range of challenges since the law was enacted, including delays in building and completing chip factories.
The recent awards are unlikely to have much of an impact on their own, according to John Lettieri, chief executive officer of the Economic Innovation Group, a think tank.
“This $500 million investment is unlikely to result in any major technological advances,” Lettieri said.
“More funding will mean more awards, which will lead to more technological advancements, regional growth and more good-paying jobs,” Commerce Secretary Gina M. Raimondo said in a statement.