Impact

Mining the CHIPS Act for America's Independence

July 30, 2023

America is in need of more chips, the essential components that power everything from our smartphones to satellites. The CHIPS Act was introduced to help satisfy this demand, but one crucial aspect is often overlooked: the sourcing of raw materials.

Semiconductors depend on rare earth elements, copper, silicon, and various other minerals. Unfortunately, most of these materials are still imported from overseas. This reliance poses significant risks, impacting both our supply chains and our long-term economic and national security. By strengthening domestic mining, we can reduce these vulnerabilities.

Let's explore how strengthening our national mining capabilities directly supports the ambitious goals of the CHIPS Act.

Securing Critical Minerals

We can’t create chips without sourcing raw materials. Key ingredients like silicon, gallium, and rare earth elements are essential to every device that operates with a chip. Currently, many of these minerals are imported, which adds uncertainty to our entire supply chain. Just one delay or political change can halt progress entirely.

By mining more of these materials domestically, chipmakers can improve their chances of sticking to their timelines. It means less frantic searching, fewer intermediaries, and better oversight of the resources they need. Domestic mining ensures a reliable supply for our technology and keeps innovation moving forward.

Bolstering the Supply Chain

The CHIPS Act focuses on establishing more semiconductor manufacturing facilities in the U.S., but that's only one aspect of the overall strategy. These factories need a steady stream of crucial materials, like silicon, gallium, and rare earth elements, to keep things running smoothly.

When we rely too heavily on international suppliers, we have the potential of running into many issues. Shipments can get delayed, prices can fluctuate wildly, and entire production schedules can come crashing down.

By mining more of these essential materials domestically, we can reduce the guesswork, giving chipmakers a supply chain that’s not just easier to manage but also more secure and resilient. A stronger domestic supply of materials directly translates to a more robust and self-reliant semiconductor industry, transforming the CHIPS Act into a powerful engine driving innovation and growth.

A modern semiconductor manufacturing facility with silicon wafers, representing advanced chip production, to highlight the importance of domestic supply chains supported by the CHIPS Act.

Boosting Domestic Manufacturing

Chip factories are essential hubs for technology, but they can’t function without the right materials. If the U.S. aims to ramp up semiconductor production on home turf, it needs to ensure a reliable supply of the resources that bring chips to life.

This effort begins underground, where a renewed focus on domestic mining can pave the way for establishing new manufacturing facilities or expanding existing ones. Having more materials on hand translates directly to increased production capacity, a core objective of the CHIPS Act.

Every bit of the right mineral extracted from U.S. soil is a step closer to realizing a more robust semiconductor industry, one that supports innovation and strengthens our economy.

Driving Job Creation and Economic Growth

Mining creates opportunities for real people. When we mine more, we’re not only bringing jobs to the mines but also to the vibrant towns that surround them. This growth brings a wave of positivity, drawing in fresh investments and innovative ideas. This flow of resources often extends beyond mining; it can spark advancements in technology, manufacturing, and even vital training programs that equip locals with new skills.

The semiconductor sector, in particular, benefits from this revitalization, as a stronger domestic workforce and economic base provide the necessary support to build new facilities or expand existing ones.

Paving the Way for a Self-Reliant Future

Our country can enhance its global leadership in technology and maintain economic stability by gathering resources and advancing semiconductor manufacturing. Continued investment, particularly in mining and the CHIPS Act, is crucial for a self-sufficient and tech-savvy future for all.