By Mike Dodd, USMC, (Ret.)
It should come as no surprise that the Department of Defense is on the leading edge of the CHIPS & Science Act, the law that stands to transform U.S. national security and economic resilience. After all, this landmark bi-partisan legislation, that will pump more than $50BN into reshoring microelectronics and another $230BN into stoking innovation, is first and foremost about defending U.S. geopolitical interests, both military and economic.
On the tip of the spear, recently announced regional technology hubs in Indiana, Ohio, North Carolina, Arizona, New York, Massachusetts and northern and southern California. As part of the Microelectronics Commons (ME Commons) program, these hubs will have a profound impact on the U.S.—here’s how:
Bolster national security
As Ronald Reagan once said, “There can be no security anywhere in the free world if there is no fiscal and economic stability within the United States.” The U.S. currently lacks a trusted supply chain of microelectronics production since most microchips are produced abroad. Additionally, the vast majority of microchips are made in Taiwan, which, the Chinese Communist Party (CCP) has repeatedly threatened to invade. By helping to reshore domestic microchip manufacturing, U.S. dependency on foreign production will be greatly reduced and a major vulnerability significantly diminished.
The technology hubs tap into regional expertise and leverage the full force of the U.S. academic, industrial and entrepreneurial base to develop cutting edge chip technology. These are the kinds of sophisticated chips used in ships, planes, tanks, long-range munitions, communications gear, sensors, including the kinds of all-domain, attritable autonomous systems used daily in the defense of our nation. Currently 360 entities from 30 states are involved in ME Commons, however, projects developed via the hubs are open to all U.S. companies and academic institutions, as well as all states and territories.
Foster innovation
These regional centers will foster innovation by challenging industry to come up with novel and innovative solutions, propose them and, if selected, receive funding to take the ideas full circle from prototype, limited production all the way to full-scale production. One of the stated goals of the ME Commons program is, “accelerating domestic prototyping”. This will happen as academics, government and industry come together to design cutting-edge microchips that will then go through a rapid prototyping process and, if successful, will be produced.
So when Special Operations Command (SOCOM) needs a sophisticated microchip for night vision equipment or the Strategic Radiation Hardened Electronics Council (SRHEC) needs a radiation-hardened chip for a hypersonic missile, the innovative prototypes will be developed quickly via the hubs.
Reduce Barriers to Entry
ME Commons is leveraging an OTA (Other Transaction Authority) contract vehicle (10 USC 4022) to award prototype agreements in as few as 60-90 days. More importantly, after a successful prototype, the company involved, and any DoD entity can enter into a follow-on production contract or agreement just as easily. Simply put, this means that instead of industry submitting reams of contract jargon and detailed specifications, they will be required to outline projects in just a few pages. In short, this will allow much smaller companies to participate in the rapid prototyping process, leveraging the full breadth of the American industrial base and U.S ingenuity.
Eliminate the ‘Valley of Death’
It’s an infamous term. The so-called 'Valley of Death’ in the DoD refers to the gap between prototype and full adoption—purchased by the government. The ‘Valley’ is where many technologies (and sometimes companies) go to die. However, as Deputy Secretary of Defense Kathleen Hicks explained, "The Microelectronics Commons is focused on bridging and accelerating the lab-to-fab transition…” to bridge the ‘Valley of Death’ and ensure that ideas turn into prototypes that are then procured by the DoD and ultimately end up supporting hardware aimed at ensuring warfighters are ready for future potential conflict.
Spur Economic Development
Take a glance at the map showing where the Tech Hubs are located. Sure, California has two—it is, after all, known globally for innovation. If you’re going to create hubs for microelectronic innovation, Silicon Valley better be on that list!
But what about Indiana, Ohio, North Carolina, Arizona and upstate New York? On the surface, these don’t seem like they would make the cut. Peel back a layer and you’ll find plenty of innovation happening at SkyWater Technology and Purdue University (Indiana), IBM (upstate New York) and TSMC and Applied Materials (Arizona), just to name a few. One of the pillars of the CHIPS & Science Act is, “stimulating private sector investment, creating good-paying jobs, making more in the United States, and revitalizing communities left behind.” The way to do that is to ‘spread the wealth’ and plant seeds in regions that haven’t necessarily been the focus of the technology revolution.
The ME Commons technology hubs will have a profound impact on the U.S. While they are funded for five years, the goal is for these hubs to become self-sufficient and keep channeling technology for generations. I’m optimistic that this will happen. As Intel CEO, Patric Gelsinger said this is the “most significant piece of industrial policy legislation in the United States since World War II.” It’s policy that will ensure the U.S. never fights a fair fight.
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