The ongoing global pandemic was brutal on many industries but the semiconductor industry was a bright spot. Due to the massive spike in demand, the chipset semiconductor industry is suffering through one of the worst supply shortages amid sky-high demand.

Amidst all this, many countries have joined hands to help the tech industry come out of these unprecedented times. In a recent statement, U.S. Commerce Secretary Gina Raimondo revealed that the government has dedicated $52 billion to the semiconductor industry. This boost to semiconductor production and research could result in seven to 10 new U.S. factories.

She anticipated that the government funding would generate “$150 billion-plus” in investment in chip production and research. This includes contributions from state and federal governments and private-sector firms.

Raimondo said,

We just need the federal money to unlock private capital it could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done.

The commerce department is planning on letting the states compete for federal funding for chip facilities. She said that the department will have a transparent process for awarding funding.

However, the chipset shortage is not something that will solve overnight. U.S. Senator Mark Warner, a Democrat said,

This is not going to solve this overnight. It will take years for the Commerce Department to make these investments.