Biden has laid out an ambitious goal for the US to produce 20% of the world’s most advanced semiconductor chips by the end of the decade

The Biden administration has set an ambitious new goal for the United States: to produce 20% of the world's most advanced semiconductor chips by the end of the decade.

This target, announced by Commerce Secretary Gina Raimondo in a speech on Monday morning, represents a significant shift for the US. Currently, the country produces none of the leading-edge logic chips that are crucial for devices ranging from mobile phones to AI to quantum computing.

"This is a significant goal," Raimondo acknowledged during her speech at the Center for Strategic and International Studies.

To help achieve this ambitious target, the Biden administration plans to leverage the resources allocated by the CHIPS and Science Act, a law enacted 18 months ago. This legislation authorizes the White House to invest $50 billion, with $39 billion specifically designated for manufacturing, to revitalize American manufacturing.

Raimondo, who is overseeing the allocation of these funds, emphasized a focus on projects that can come online within this decade. This poses a challenge for many complex initiatives that require specialized equipment and supply chains.

Not all companies may be satisfied with the assistance they receive. Raimondo noted that the 2030 goal means that some proposals with longer timelines may not receive funding. Additionally, due to limited funds, some projects may receive less than half of the requested amount.

"These negotiations are challenging, but it's our responsibility," Raimondo stated.

Raimondo heads a team of over 200 individuals tasked with implementing the legislation, which aims to address America's declining share of semiconductor manufacturing. While the US produced nearly 40% of the world's chips in 1990, today, less than 10% are manufactured in the country.

The situation is even more stark for the most advanced semiconductors, as 100% of these chips are currently manufactured overseas, primarily in Taiwan.