California has been selected as the home of a new national headquarters for computer chip research and development that is expected to bring in over $1 billion in research funding to the state, create hundreds of local jobs and transform America’s semiconductor industry, a core component of our economy and national security.
The Biden-Harris Administration selected Sunnyvale, California, as the location for the second of three CHIPS for America R&D flagship facilities, based in part on the depth of semiconductor expertise across the University of California and Silicon Valley’s standing as a hotbed of chip design and innovation.
Tiny components, enormous stakes
The semiconductor industry makes computer chips, the miniscule, ornate “brains” of all the electronic devices that underpin modern life, from smartphones and cars to satellites and data centers. Computer chips were invented in Silicon Valley, and California remains on the forefront of their design and innovation. But America has gradually lost its edge in producing these vital components.
“By now you’ve heard the dire statistics: the U.S. share of semiconductor manufacturing capacity, which was 37 percent back in 1990, has dropped to 12 percent,” said Dr. Tsu-Jae King Liu, Dean of the UC Berkeley College of Engineering, testifying before the House Subcommittee on Research and Technology in 2022. The dearth of domestic chip sources hit home during the pandemic, when supply chain disruptions brought U.S. factories to a standstill, contributing to painful shortages of consumer goods.
Federal investment in the semiconductor industry
The Biden-Harris Administration’s bipartisan CHIPS and Science Act of 2022 was enacted to head off future supply chain problems that threaten our economy and national security by bringing chip manufacturing back to the U.S. The law calls for the creation of three complementary microchip R&D hubs that together will tackle barriers and fuel innovation and growth in the domestic semiconductor industry.
U.S. Commerce Secretary Gina Raimondo in early November announced the Silicon Valley city of Sunnyvale as the future home of the CHIPS for America Design and Collaboration Facility. The second of three planned hubs, the Sunnyvale facility will serve as headquarters of the National Semiconductor Technology Center (NSTC), a consortium of industry, academia, and government that’s working together to accelerate domestic innovation and onshore production.
“With the NSTC headquarters for R&D in the heart of Silicon Valley, the Biden-Harris Administration’s CHIPS and Science Act is unlocking cutting-edge research, tools, and quality jobs to communities across the country,” said Sen. Alex Padilla (D-Calif.). “By partnering with institutions like the University of California that play an important role in the strength of our semiconductor ecosystem, this new Design and Collaboration Facility will harness some of the state’s top talent to secure America’s leadership in global semiconductor technology.”
The University of California joined Governor Gavin Newsom’s Office of Business and Economic Development (GO-Biz) as a partner in the effort to bring one of these microchip hubs to California. In making the case to the Commerce Department, UC leaders highlighted a number of opportunities that leverage the university’s people, tools and networks:
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UC and GO-Biz will host quarterly roundtables and an annual “Semiconductor Summit” bringing together industry, academia, government agencies, U.S. Department of Defense research offices, national labs, venture capitalists and more, to foster collaboration, innovation, and engagement.
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UC Berkeley College of Engineering will collaborate with Natcast, the nonprofit established to operate the National Semiconductor Technology Center consortium, to launch a Visiting Scholars program
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UC will partner with Natcast to launch a student internship program, connecting the university’s existing talent and workforce development efforts into the new hub
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UC Berkeley, Stanford, and USC will integrate Natcast into the work of the two Department of Defense-funded microelectronics hubs, immediately connecting the organization to more than 171 connected industry and academic partners.
“UC’s track record of semiconductor-related innovations is foundational to Silicon Valley. Our deep experience, expertise and resources across our 10 campuses and three national labs are unmatchable assets in the effort to reestablish America’s leadership in technology design and innovation,” said UC Vice President of Research and Innovation Theresa Maldonado.
“We are thrilled that the Department of Commerce and Natcast chose to locate this critically important facility in Sunnyvale, the heart of the Silicon Valley, alongside the world’s largest concentration of semiconductor businesses, talent, intellectual property and investment activity,” said Dee Dee Myers, director of GO-Biz. “The Newsom Administration and our partners across the industry know how important it is to shorten the timeframe from R&D to commercialization. We are looking forward to a productive partnership with the Department of Commerce and Natcast to ensure that CHIPS for America will be an enduring success not only for our state but for the entire country.”
“With our unparalleled talent pool, leading research institutions, and thriving technology sector and companies, California is uniquely positioned to lead on the future of semiconductors,” said Rep. Adam Schiff (D-Calif. 30), who backed California’s bid for the facility. “This decision will also reduce our reliance on foreign semiconductor supply, bring good paying jobs to California and strengthen our supply chains. No state is better equipped for world class innovation.”
UC’s role in chip design and innovation
Since the 1960s, when engineers at UC Berkeley set up the first-ever lab for prototyping integrated circuits, the University of California has been a world leader in chip design and manufacturing. And the university’s technology transfer program has helped ensure that these vital innovations don’t stay locked up in a lab: Generations of UC faculty and alums have built and led the companies behind some of the most foundational technologies of modern life.
“The University of California’s legacy of innovation helps advance America’s best interests in the 21st Century global economy,” said Rep. Zoe Lofgren (D-Calif. 18). “UC has generated jobs and billions of dollars of economic growth and opportunity for Californians. I look forward to seeing UC’s faculty and students working with and at the CHIPS for America Design and Collaboration Hub – which will be in Silicon Valley, the birthplace of countless cutting-edge technologies.”
With four campuses among the nation’s top 30 engineering schools, UC also plays an essential part in educating people to tackle the global, high-stakes challenges facing the semiconductor industry. The CHIPS for America hub will build on these resources, providing opportunities for internships and collaboration among academia, government and industry.
“The CHIPS and Science Act included substantial investments in education and workforce development, recognizing that building up our domestic semiconductor industry is a long-term commitment,” said Rep. Anna Eshoo (D-Calif. 16). “The partnership between the NSTC Design and Collaboration Facility and the University of California will bring together cutting-edge research facilities, world-class engineering programs, and America’s best public university students. This collaboration will ensure the University of California will play an essential role in advancing the next-generation of semiconductor technologies.”
Find more information about the CHIPS for America R&D hub from our partners:
U.S. Commerce Department: Biden-Harris Administration Announces Sunnyvale, CA as Expected Location for Second CHIPS for America R&D Flagship Facility
Governor Gavin Newsom: Building on long history of tech & innovation, California selected as headquarters for the National Semiconductor Technology Center
Governor’s Office of Business Development: California Selected as Headquarters for the National Semiconductor Technology Center
