Good morning and welcome. Im a senior fellow h our amerin act here. Innovation is our nations ueconomic growth and competitiveness and National Security and semiconductors on which our economy much of our innovation is on the site and blending the chips and science act is so we e in the United States and connect americans in this economy and invest in our structure and cooperate with our allies and Strategic Partners grow chains to secure the future of this leadership the 21st century so with the secretary of will give us an update on the chips act. As a former governor she understands the needs for these outcomes and economic develoenans. It is my special pleasure to■j■n technology and the chips mentation. The keynote secretary advisor charles wessler. Thank you. Can you hear me . Eat. Spring is here. It seems like spring is her, ito beb and thank you for hosting, this is an Important Message and i appreciate you giving me this opportunity. Im here because it was a year ago, last february were about the funding that a year ago. I said the chips initiative mirrors t s race from decades ago. At the time presi kennedy made a call tomen on the moon as since, the whole country,try, te government rallied together plan some cases tripled or quadrupled the number of scientists institutions of Higher Education pruced. We have the same opportunity right now, six5s decpresident ba nation to unite a common purpose so we can demand our leadership role in this Global Semiconductor race. Everybody here deal semiconductors are. Everything is powered by ipers, pacemakers, pretty much every piece of military equipment from everywhere. Ntal to our lives the moment you wake up in the morning until you go to bede changer in the demand for leading edge of the conductor chips. You all know what it is. A. I. When we started this genitive a. I. Wasntt of our capillary. Now its it takesing Edge Semiconductor p a single language model. ■5 you cant lead in a. I. If y makg edge chips is implementing the chips a got a whole lot more important. Lead, lead in the design of chips, the development of a. I. Large language model but we dont manufacture or package any leading edge chips we need to fuel a. I. And her oldov ecosystem including chips necessary for natiol dse the brutal fact is the united cn such a shaky foundation. We need to make these chips in america we need more tal development in america, research in aca more manufacturing. China arent shy they are takinl increasing their own chip production. The truth is, if we want to ccot the Commerce Department and the team youve built, we are to nail the implementation of the chips inside act, we have to execute like every detail be bor vision. When we roll this out a year ago, i said wed be judged on two things. First, whether we were able to Semiconductor Industry that expenses our leadership and second, whether we were good stewards i take that very seriously. Youre into it, i want you to kn and practic a we are on track to accomplish both up his team is flexible, fast and worldclass, they built teams thats incredible. 200 people that work on t offict academia, folks with, industry, policy expertise record of deliveringly results e incredible. We are inhe trenches all day everyday working in one of the guys on our team told me he recently discovered he has a dont let him out the sun so woe bit. Since President Biden signed the chips act before was a single dollar out to private companies, announcing semiconductor manufg investments. Thats incredible. I want to hear a you for the way you responded with your willingness to partner with us to achieve National Security goals. The chip find nine states have created Economic Development in the industry tocd leverage the chips act, 50 Community Colleges across 19 states announced new or expanded programming support semiconductor opportuniti and we are partnering with labor leaders and unions and manufacturers training the workforce of the future so that we need to build up that means we are sitting down with everyone including units across the country to ensure high school students. Many do but notll so we will gee skills they need to get the jobs career pathway. We are working with academia and Government Research agencies and entrepreneurs and industries to stand up domestic Semiconductor Technology sector which will tackle the research and Development Challenges the chips manufacturing ecosystem and upscal s workforce. A week or two ago we wellknown, wellrecognized industry ceo of the national Semiconductor Technology efforts. Thats all the good news. The National Governors association lean into this and we are ready g received 600 companies, the biggest and the smallest. The brutal reality is the significant majority of those Companies Expressing interest arent going to receive Funding Proposals by Strong Companies th a■g■d worthy. The reality is, and times, the r p isnt struggle a bunch of money out to as Many Companies possible even though that would be easier. Our job is to targeted investments in relentless security objectives. For start announcingreiterate te purpose of our here. At the outset we said we would invest about 28 billion of the program 39 billion incentives leading edge manufacturing. I want you to know leading Edge Companies alone requested more than 70 billione a lot of tough conversation■u. Of collab partners. I think im obsessed with moneye have to be tough with companies, tough with individual in each one of them for economic and security a lower cost of the taxpayer. That mea create tens of thousands of highpaying jobs in the community where they are located and enhance National Security work and every one of these companies have todhere to the guardrail of the guards so ask semiconductor ceo and ss pushing us to do more for less. Why . If they d fund more projects with the sam amount of money and achieve the National Security goal. My conversation with ceos of the chips com much goes the same way. They asked for billions of dollars, be lucky to get half of tha again and they get less than half of what they wanted and they tell me they are t feeli lucky. That is the reality. These are tough nias our job. I want to thank them i that we a finite amount of money to meet■e urgent National Security goal so i have to make every dollar count. Acute is and decided to prioritize projects by. I want to be clear, there are many worthy proposals wevey received with plans to come after 2030 and we are yi n want to maximize our impact of this decade. Services will to give money to a product that will come on ten or 12 years f now. Saying no to a pro come on my sister this does this work is easy. A lot of people say its to pick winners and losers. Of course but this, there is way more risk than doing nothing. We were headed down a pat greater National Security risky for President Biden these investments in part of the overallnv. We cannot allow ourselves to be on one part of the world for the most century thaty were doing what we are doing. Asher said the goal when we are said and done this chips initiative is to have at least tw largescale answers leading edge whatcvh of the clusters employing thousands of workers. Im pleased to tell expect to exceed that, i think will do better than what we told you we would do a year ago. ■e manufacturing will put this country on track to proce roughly 20 of the end of t decade. Look at the big deal, why is this a big deal . Da at zero. A year ago before we saw the application we said we will at least two■g ecosystems and by te end of the dad leading edge the uniteduc states of america and to supply will come along with that. Be ve to geopolitical challenges as they areoday. We also believe youll be successf having leading edge on shoring cost competitive■w scale here in unid states of america. I feel more certain of this everyday as we look at this proposal in addition to the goals i laid out, i am confident that is six can become home to the entire supply chain from polysilicon production8 manufacturing to advanced packaging. When i say lets be the a few n. To those of you saying what about mature notes . There on that, to. Guanoevices and Defense Systems and critical infrastructure, think back to a minute ago for allowing tens of thousands of workers and car companies. We got to improve the fragility and that are ready to date who announcements of investments, not quite 2 billion, over a billion and a half will■p contie to make sure we have a domestic supply of these chips so as i aa successful, and i know it will be i want to thank my team for your unbelievable dedication and hard wor like 2030, United States of america will be the only country in the where new chip architecture can be new Research Labs design for of manufactu scale in the united packaged with the most advanced technology in the all on our sure. Engineering schools all over the country will be pumping out more engineers andians trained pacifically for the chipsy. Hardware second. Building does that sound fun . We need computer scitist softwa. Right here in highpaying jobs. The excitemen i probable limited appeal and almost 20 governors showed high schools are excited, they want to know we can do. Five years ago if you are thinking of this, the question was, whe i expand . Now companies are in what state in expand . With White University in america . Where should be located and with whom thanks to President Bidens leadership in the vion anhdhe cor orancy of the manufacturing sector, i am so optimistic, we are working day a night as fast as we can but way more important than going fast is getting it right and we are relentlessl pursuing National Security goal which means to get all ofbuild our ins of good paying jobs and i think one of the most monumental challenges of a return to mexico for some comingm excited for whats going to come,]n. Im not sure i want to ask russians. Sometimes the washington achievement a great deal more than the a of who stayed for the first time1 in this■ number but there is a related number recoverco■ how to ask for the thank you for what you have sent your go to patient, there was the assumption. Now weave 600 cases of interest solutions, plans. The companies are coming forwars is enough money to achieve that goal doesnt mean at a future date we wont need to two or more■a money. Like i said, the whole ecosystem. We may need that but based on everything i know now and where we are, we have the money wetha. You think the political establishment here inngton its appreciates 30 billion expanding their facilities and refining them . I would like to think we are the best and brightest of the■ leverage. People understand■t china as i said,■r china is not shy about■p manufacturing customers are■ american. Apple,google, amazon so who do e edifice and are american so we definitel d go dollar for dollar■ why i am so. Contemplating in arizona they states. The leverage you mentioned is a great advantage. E like to brig attention, very happy to hear you talki chips. I dont know you but find it fortunate like selling Something Program of us addicts. Here we suffer foundational, how much but the question is, do you expect the resources . More reso. The legislation requires the invest a minimum of 2 billion in two foundational. Lucas not alone promote the e pronouncement was a billion and a half and the wheels exceed the 2 billion statute. If we had more, who would do what no doubt about it. No to excell proposals. We could easily more an excellet thats why im not on the Christmas Card list last year dollar when it was a dollar to invest in the rest of the ecosystem. The things were talking about chips, prevention 52 billion in the direct the importance of t taxpayers . Usually important and i want to say thank you to congress for that, i was involved in neat bill and there were different views of the time, should a company be allowed to iegor tax credit alld and done, the tax credit shown y powerful part ofhe incentive stretch capital and thats why youre able to do so much. That is encouraging to hear. E resources we envision be a secure research and Development Working with industry and universitykv o have we mentioned so that when one workforce concerns some of. Workforce you can imagine everye of so for example,■ technician in the chip industry have to have this curriculum, every technician have to pass this endeavor scientists so our hope is thathi can set standards and pic to unify the industry whi when it comes more trainedple to work in the chips industry benefits over thats where i think america all. When you talk tof6od,t for e, i talked to a■, they want to be here they are of money, theyo make sure the supply is here. One of these Companies Says i need to be able to hire thousands upon thousands of phd engineers, College Graduate i think it cod prove to be the most important. I am pleased to hear you sayw these new Training Program but you stress the importancee semiconductors question might be, we■ f they dont want to putou on the spot butu the National Security is that the first■vt■ ■■u part aboutt happens here. If we find ourselves in a world three years from now just think about this. All artificial intelligenceningd technology of our he cannot tran without tens of thousands. Imagine if we are dependent on a couple of countries insia and the chips supply. These are the models to train military, simulations, ot. You want to buy all of those chips from asia . I dont. Youannot leave the world United States of america if you dont the world this technology and innovation including manufacturing so i cant allow myself to think about failure because it is that important for our countrys strength. All over the world, americas a leader in the world. We have to advance the leadership. Th called so many times for responsible immigration. We cord that. I would be strongly something ts highly skilled immigrants for the industry. I wish it were brought up i the chips industry but it does keep me up at night and they want to stay. There is a certain irony, hundreds of thousands to train in a critical area. The numbers of im not mistaken, would huge but they may well be criti here, and i really mean that you happen inspiring and the space race is an appropriate maphor, what you see as your main to get these awards out . You make smaller groups of people happy and the groups unhappy. Do you see any clouds on the horizon you need to handle or are you confident we have bipartisan support . Its really hard, im not going to pretend its not. Every yes or no is fraught with a lot of it hopes to have the north start of our National Security goal, and thats what we are focused on that i think is allowing us to maintain support. In the past month have spoken to senator cornyn, senator warner democrat from virginia will feature some of they are both still strongly supportive. Tumor last week stilltron so i o when we say no the companies and we get calls from senators saying how come youre from the company . They will be uncomfortable calls , i understand why, they want to sti their state to tell them, give me more money and i is an easy solution to this. Auter] i can double the number of companies both limited money i have from oakwood got to make tough choices b lot of support. I mentioned i was of the compass this weekend National Governors association and iere like 15 ors who showed and they were allpar. Big states chemical states so i feel p about. What youre, there seems to be enorms necessary to make our echo sy disturbed lucy maybe either horizon. How do you see the longevity . Im pointing to my team because i say our meeting, dont be shortsighted. We have to havea like the end of last year we announced the board of rap stars and announced this year we launch excellence so we needtte are 20 year longterm goals. If we are shortsighted, this is our one chance to get right aboe smaller ones . Can you help tho or ideas . Two points, we are determined to give small grant to small arf companies in the semiconductor supply chain. Not building big , that requires skill but they might have materials that areinm have a whole Initiative Companies to give small grants. The majority will be told but Many Small Companies are going to get funded but the thing youb or testing facility for digital ability, for little companies to use. Access to equipment, they otherwise couldnt afford much but we are building enough take tc longterm. If we do our job right, of innon is■ as the chips get smaller and such but Small Companies should s to the l so they can develop technology. We are extremely conscious. The companies in the pasttens the. We can always the top of this all afternoon but [laughter] thank you so much for coming. [applause] [applause]wm6 aq ■nc
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