Success requires America maintaining a technological edge.
Semiconductor chips are manufactured in the clean room at GlobalFoundries Fab 8 in Malta, N.Y., in June 2021 over five years to semiconductor chipmakers — a shot in the arm for businesses competing against heavily subsidized rivals in East Asia and an insurance policy in the event of Chinese aggression. But in the long run, U.S. success requires maintaining a technological edge, and that means an emphasis on research and development.allocated by the Chips Act over the next five years.
The NSTC should do the same. It won’t be easy, however. After spending down government seed funding, the NSTC is expected to rely on contributions from industry, and companies will inevitably want their funds to promote incremental “development” related to their existing product plans. If the NSTC allows the priorities of major industry funders to shape its research agenda, it risks replicating existing research consortia, and its impact might be limited.
The NSTC’s biggest investments should be in capabilities that would help the entire industry, such as AI-enabled chip-design tools. It should also develop new materials and tools needed for ever more precise manufacturing. These capabilities require long-term investments with uncertain payouts, so venture capital funding is scarce. Yet it was DARPA’s investments in design software and chip-making tools a generation ago that produced the chips powering artificial intelligence today.
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