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Cspanshop. Org. Commerce secretary Gina Raimondo discussed investments in artificial intelligence, supply chains and the Semiconductor Industry at an event hosted by the center for strategic and international studies. She says the u. S. Is aiming to manufacture 20 of leading edge logic chips by 2030, which are used in emerging technologies such as ai. She talked about the significance by pointing out that production is currently at zero. This is about 45 minutes. States. Good morning and welcome. Im a senior fellow here and i direct our American Innovation act here. Innovation is our nations Economic Growth and competitiveness and National Security and semiconductors are the platform on which our economy runs and on which so much of our innovation is built. Thats why implement and the chips and signs act is so important. In various ways, chips is pushing how we manufacture in the United States. Americans in this economy and invest in our structure and cooperate with our allies and Strategic Partners grow resilient supply chains. All of this is to secure the future of this leadership the 21st century so with the secretary of commerce will give us an update on the chips act. As a former governor she understands the needs for these outcomes and Economic Development the face all americans. It is my special pleasure to invite investing in leading technology and the chips mentation. The keynote secretary composition with advisor charles wessler. [applause] thank you. Can you hear me . Great. Spring is here. It seems like spring is here. Anyway, its wonderful for me to be here and thank you for hosting us, 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 the chips Incentive Program and we did that a year ago. I said the chips initiative mirrors the space race from decades ago. At the time president kennedy made a call to america to put a man on the moon and the decades since, the whole country, academia, industry, the government rallied together to secure americas place and in some cases tripled or quadrupled the number of scientists institutions of Higher Education produced. We have the same opportunity right now, six decades later, President Biden calling him a nation to unite around a common purpose so we can demand our leadership role in this Global Technology race in the semiconductor race. Everybody here knows what a big deal semiconductors are. Everything is powered by semiconductors. Windshield wipers, pacemakers, pretty much every piece of military equipment from everywhere. Everything is fundamental to our lives the moment you wake up in the morning until you go to bed. Now on top of all that is a game 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. Wasnt even part of our capillary. Now its everywhere. It takes tens of thousands leading Edge Semiconductor chip a single language model. You cant lead in a. I. If you dont need an making meeting edge chips so our work is implementing the chips act just got a whole lot more important. The truth is from the u. S. Does 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 old Innovation Ecosystem including chips necessary for national defense. The brutal fact is the United States cannot lead the world on such a shaky foundation. We need to make these chips in america we need more Talk Development in america, research in america and a lot more manufacturing. I the way, other countries like china arent shy they are taking an increasingly ambitious goal increasing their own chip production. The truth is, if we want to continue technologies and we at 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 matters because it does and we have to be bold enough with our vision. When we roll this out a year ago, i said wed be judged on two things. First, whether we were able to build reliable resistance Semiconductor Industry that expenses our technological leadership and second, whether we were good stewards of taxpayer dollars. I take that very seriously. Youre into it, i want you to know and practice a we are on track to accomplish both. In record time this team has set up his team which is flexible, fast and worldclass, they built teams thats incredible. 200 people that work on the Program Office will represent decades of experience in government, investing, industry, research, academia, folks with policy expertise and track record of delivering. I think the early results are incredible. We are in the trenches all day everyday working in one of the guys on our team told me he recently discovered he has a vitamin deficiency because they dont let him out the sun so we are trying to pull out a little bit. Since President Biden signed the chips act before was a single dollar out to private companies, announcing 200 billion in Semiconductor Manufacturing investments. Thats incredible. I want to hear a thank you for the way you responded with your willingness to partner with us to achieve National Security goals. The chip act find nine states have created Economic Development in the industry to provide matching funding and leverage the chips act, 50 Community Colleges across 19 states announced new or expanded programming support Semiconductor Opportunities and we are partnering with labor leaders and unions and manufacturers training the workforce of the future so that we have the folks 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 not all so we will High School Students to get the skills they need to get the jobs these semiconductors need to have a strong 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 upscale so we have a skilled workforce. A week or two ago we announced a wellknown, wellrecognized industry veteran who will be the ceo of the national Semiconductor Technology efforts. Thats all the good news. The National Governors association, they are excited to lean into this and we are ready to go. We 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 including many excellent proposals by Strong Companies that are worthy. The reality is, and ive said this many times, the reason for the problem isnt struggle a bunch of money out to as Many Companies possible even though that would be easier. Our job is to make targeted investments in relentless pursuit achieving National Security objectives. For start announcing big announcements, i want to reiterate that, that is the purpose of our effort here. At the outset we said we would invest about 28 billion of the program 39 billion incentives for leading edge manufacturing. I want you to know leading Edge Companies alone requested more than 70 billion so that means we have a lot of tough conversations. We are engaging in the spirit of collaboration and they have been incredible partners. I think im obsessed with protecting taxpayer money and we have to be tough with companies, tough with individual companies in each one of them for economic and National Security a lower cost of the taxpayer. That means we are going to 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 to adhere to the guardrail of the guards so ask semiconductor ceo and shes pushing us to do more for less. Why . If they do, we will be able to fund more projects with the same amount of money and achieve the National Security goal. My conversation with ceos of the chips companies pretty much goes the same way. They asked for billions of dollars, reasonable be lucky to get half of that. When they come in again and they get less than half of what they wanted and they tell me they are not feeling lucky. That is the reality. These are tough negotiations, thats our job. I want to thank them in their partnership that we have a finite amount of money to meet urgent National Security goal so i have to make every dollar count. Acute is and decided to prioritize projects that will be operational by. I want to be clear, there are many worthy proposals weve received with plans to come online after 2030 and we are saying no. Want to maximize our impact of this decade. Services will to give money to a product that will come on ten or 12 years from now. Saying no to a product that will come on my sister this does this work is easy. A lot of people say its risky to pick winners and losers. Of course but i will tell you this, there is way more risk than doing nothing. We were headed down a path of greater National Security risky for President Biden right of these investments in part of the overall investing. We cannot allow ourselves to be reliance on one part of the world for the most important part of the century thats why were doing what we are doing. Asher said the goal when we are said and done this chips initiative is to have at least two new largescale answers leading edge what each of the clusters employing thousands of workers. Im pleased to tell you we expect to exceed that, i think will do better than what we told you we would do a year ago. Manufacturing will put this country on track to produce roughly 20 of the end of the decade. Look at the big deal, why is this a big deal . Today we are at zero. A year ago before we saw the application we said we will at least two ecosystems and by the end of the decade zero to 20 leading edge the United States of america and to supply chain will come along with that. It will no longer be vulnerable to geopolitical challenges as they are today. We also believe youll be successful in having leading edge memory on shoring cost competitive scale here in United 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 production and manufacturing to advanced packaging. When i say lets be bold about this is the a few new including r d in the United States. To those of you saying what about mature notes . There on that, to. Guano cars, medical devices 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 we will do that are ready to date who saved three announcements of investments, not quite 2 billion, over a billion and a half will continue to make sure we have a domestic supply of these chips so as i said, chips for america successful, and i know it will be i want to thank my team for your unbelievable dedication and hard work, like 2030, United States of america will be the only country in the world where new chip architecture can be invented new Research Labs design for every application you can think of manufactured at scale in the United States packaged with the most advanced technology in the world all on our sure. Engineering schools all over the country will be pumping out more engineers and technicians trained pacifically for the chips industry. We want to make Building Hardware second. Does that sound fun . We need computer scientists to build software. Right here in america highpaying jobs. The excitement is probable limited appeal and almost 20 governors showed up. High schools are excited, they want to know we can do. Five years ago if you are thinking of this, the question was, where in asia do we expand . Now companies are saying in what state in america should we expand . With White University in america . Where should be located and with whom x thanks to President Bidens leadership in the vision and the core of the vibrancy of the manufacturing sector, i am so optimistic, we are working day and night as fast as we can but way more important than going fast is getting it right and we are relentlessly pursuing National Security goal which means to get all of us will rebuild our industrial base, supercharge American Innovation and make hundreds of thousands of good paying jobs and i think one of the most monumental challenges of a return to mexico for some coming im excited for whats going to come,. Im not sure i want to ask russians. Sometimes the washington achievement a great deal more than the and without falling into the trap of who stayed for the first time in this number but there is a related number recover economist how to ask for the thank you for what you have sent your go to patient, there was the assumption. Now we have 600 cases of interest solutions, we know the plans. The companies are coming forward being ambitious so i think this is enough money to achieve that goal doesnt mean at a future date we wont need to two or more 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 we have. Thats encouraging. You think the political establishment here in washington its appreciates 30 billion expanding their facilities and refining them . I would like to think we are the best and brightest of the leverage. What youre saying amano people understand china as i said, china is not shy about ambition, they are pouring in depending on who you listen to, dollar plus in their own chip manufacturing customers are american. Apple, nvidia, microsoft, google, amazon so who do have edifice and they are american so we definitely dont have to go dollar for dollar however, this is why i am so urgent about it. Contemplating in arizona they are investing in the United States. The leverage you mentioned is a great advantage. Some people like to bring attention, very happy to hear youre talking about legacy chips. I dont know you but i 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 . Can we get more resources for. The legislation requires the invest a minimum of 2 billion in two foundational. Lucas will not alone promote the one 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. Were going to have to say no to Excellent Companies with excellent proposals. We could easily invest quite a bit more an Excellent Companies but i do feel we can do both but thats why im not on the Christmas Card list last year because we are squeezing every dollar when it was a dollar to invest in the rest of the ecosystem. One of the things were talking about chips, prevention 52 billion in the direct grant, what is your view on the importance of the taxpayers . Usually important and i want to say thank you to congress for that, i was involved in negotiating the bill and there were different views of the time, should a company be allowed to integrate and tax credit for tax credit all said and done, the tax credit shown to have been unbelievably powerful part of the incentive stretch capital and thats why youre able to do so much. That is encouraging to hear. We hope and rigid these resources. We envision it to be a secure research and Development Working with industry and university to have also we mentioned so that when one workforce concerns some of. Workforce you can imagine every semiconductor we would approve of so for example, every summer technician in the chip industry have to have this curriculum, every technician have to pass this endeavor scientists so our hope is that this can set standards and practices to unify the industry which is the benefit of every company. When it comes to talent, having more trained people to work in the chips industry benefits over company. Thats where i think america if all. When you talk to for example, i talked to a ceo, they want to be here they are investing huge amounts of money, they want to 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 engineers, anyway i think it could prove to be the most important. I am pleased to hear you say that. These new Training Program already spreading but you stress the importance with leading Edge Semiconductors and one question might be, do we they dont want to put you on the spot but the National Security is that the first part about what happens, its not an option here. If we find ourselves in a world three years from now, just think about this. All artificial intelligence, the defining generation and technology of our generation goes unchecked, he cannot train without tens of thousands. Imagine if we are dependent on a couple of countries in asia and the chips supply. These are the models to train military, simulations, bioterrorism. You want to buy all of those chips from asia . I dont. You cannot leave the world United States of america if you dont the world and 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. The president has called so many times for responsible immigration. We cant afford that. I would be strongly supportive of something that maintains highly skilled immigrants for the industry. I wish it were brought up in the chips industry but it does keep me up at night and they want to stay here. There is a certain irony, hundreds of thousands to train in a critical area. The numbers of im not mistaken, would be huge but they may well be critical. To take a step back here, and i really mean that you happen inspiring and the space race is an appropriate metaphor, what you see as your main challenge 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 dialogue. 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 i have spoken to senator cornyn, senator warner democrat from virginia will feature some of us what they are both still strongly supportive. Tumor last week still strongly supportive so i have no doubt when we say no the companies and we get calls from senators saying how come youre from the company . They will be uncomfortable calls but fundamentally, i understand why, they want to stick up for their state to tell them, give me more money and i will. [laughter] is an easy solution to this. [laughter] i can double the number of companies both limited money i have from oakwood got to make tough choices but short answer, we have a lot of support. I mentioned i was of the compass this weekend National Governors association and i did a panel in there like 15 or 18 governors who showed up and they were all bipartisan. Big states chemical states so i feel pretty good about. What youre saying, there seems to be enormous potential necessary to make our echo system work but ive been 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 have shortterm goals like the end of last year we announced the board of rap stars and announced this year we launch excellence so we need shortterm milestones but these are 20 year longterm goals. If we are shortsighted, this is our one chance to get right talking about logic, about the smaller ones . Can you help those companies prototyped or ideas . Two points, we are determined to give small grant to Small Companies. There are unbelievably debate of companies in the semiconductor supply chain. They are not building big labs, that requires skill but they might have materials that are innovative or somehow puts so we have a whole initiative internally to look at Small Companies to give small grants. The majority will be told no but many Small Companies are going to get funded but the thing you said even more exciting, ntc will infrastructure with her lab 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, otto what the next wave of innovation is as the chips get smaller and such but Small Companies should have access to these labs so they can develop technology. We are extremely conscious of. The companies in the past, often the source of these ideas the economy. We can always the top of this all afternoon but [laughter] thank you so much for coming. [applause] [applause] tuesdayn cspan, a Senate Homeland security subcommittee holds a hearing on the russiaukraine more and concerns about americanmade semiconductors being found in equipment used by russias military. Watch live at 10 00 a. M. Eastern. At 2 15, state department and pentagon officials testify aut security challenges in the red seafter yemens iranbacked attackon ships in the region. The senate is academic luck a. M. Eastern to consider u. S. District Court Nominations for southern florida. Senators wl vote on whether to advance the nomination of Hampton Dillinger to be u. S. Specia counsel for a special term of ve years. Watch our special coverage on the free cspan now video app, or online at cspan. Org. Cspan is your unfiltered view of government. Were funded by these Television Companies and more, including sparklight. The greatest town on earth is the place you call home. At sparklight, its our home to and were facing our greatest challenge. That is why sparklight is working around the clock to keep you connected. Doing our part so it is a little easier to do yours. Sparklighsupports cspan as a public

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