The US Trade and Development Agency (USTDA) is backing Kenya’s chip industry with a $1.3 million grant. Allocated under the International Technology Security and Innovation Fund, created by the CHIPS and Science Act of 2022, the funds will go towards expanding semiconductor fabrication in Kenya. This will help Semiconductor Technologies Limited (STL) expand its production of older-generation chips on a commercial scale.
STL is a nanofabrication and semiconductor manufacturing company in Kenya domiciled at Dedan Kimathi University (DeKUT). The announcement was made after a round table discussion led by Kenya’s president William Ruto and US president Joe Biden. Present at the discussion was STL’s Managing Director, Dr. Anthony Githinji.
For STL, this is another boost to its operations coming soon after it signed a major agreement with Baylis Emerging Markets at the recent AMCHAM 2024. This partnership aims to raise $250 million to upgrade STL’s chip factory and research lab. Franklin Olakunle Amoo, Managing Director Baylis Emerging Markets, was also present at the US meeting.
Further, the US through the National Science Foundation (NSF), promises to strengthen connections between U.S. and Kenyan universities. This will be achieved via workshops, planning grants, and supplements. The NSF, GlobalFoundries, and Micron will also provide funding to help improve Kenyan universities’ tech programming and university infrastructure. This will equip Kenyan students with skills to join the semiconductor industry.
The CHIPS and Science Act 2022
Kenya becomes the first country in Africa to benefit from funding through the CHIPS and Science Act. This is an act approved by the US Congress in 2022 to boost American semiconductor output with $52.7 billion in research and manufacturing subsidies.
It is part of efforts by the superpower to wrestle back control of the semiconductor chip industry that relies on East Asia for 75 percent of global production. US share of the global market has fallen from 37% in 1990 to 12% in 2020.
In recent months tech giants have benefited from grants and loans under the CHIPS and Science Act. Intel received $8.5 billion to expand its high-end fab capacity. Taiwan’s chip maker, TSMC was awarded $6.6 billion while South Korea’s Samsung has been awarded $6 billion. These are the top three highest grants under the act yet.
