Commerce announces how it’ll spend the $50B

The Biden administration on Monday unveiled its plan for bolstering domestic chip production in the U.S. by using the $50 billion in funding from the CHIPS and Science Act passed this summer.

The administration will use the majority of the funding, around $28 billion, to establish domestic production of leading edge logic and memory chips through grants, subsidized loans or loan guarantees, the Department of Commerce said in an announcement.

The administration will use around $10 billion to increase production of current-generation semiconductors and chips.

An additional $11 billion will be invested in research and development in an effort aimed at creating a “dynamic new network of innovation” for the semiconductor industry in the country, the department said.