The U.S. Commerce Department announced on Monday the cancellation of a major agreement that was finalized under President Joe Biden to allocate $7.4 billion towards semiconductor research funds. The deal tasked an outside center with overseeing the deployment of these taxpayer funds aimed at advancing semiconductor technology in the United States[1][2].
Central to the department's decision was the determination that the Biden administration had illegally created the National Center for the Advancement of Semiconductor Technology (Natcast), a private non-profit organization. As a result, the Commerce Department has voided the agreement that would have allowed Natcast to manage the semiconductor research funds[1][2].
Going forward, the National Institute of Standards and Technology (NIST) will assume direct operational responsibility for the National Semiconductor Technology Center. NIST, under the Commerce Department, will oversee the research objectives and distribution of the funds previously entrusted to Natcast[1][2].
This decision comes amid increased global competition in the semiconductor sector, notably with companies such as Lontium Semiconductor Corporation in China continuing to develop advanced chips for data transmission, display drivers, and applications ranging from virtual reality to artificial intelligence and 5G technology[3]. The move signals ongoing efforts by the U.S. government to assert control and streamline oversight in the strategic semiconductor industry.
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