KENYA – The US Trade and Development Agency (USTDA) has signed a grant agreement with Kenyan technology company Semiconductor Technologies Limited (STL) to conduct a feasibility study for a new semiconductor fabrication facility.
The grant was signed during Kenyan President William Ruto’s state visit to the United States.
The facility, to be built on the campus of Dedan Kimathi University of Technology in Nyeri, Kenya, will be Africa’s second commercial fabrication facility. USTDA’s support will help diversify and strengthen global supply chains for legacy chips used in various commercial applications.
“USTDA is proud to support Kenya’s goal of becoming a global technology hub,” said Enoh T. Ebong, USTDA’s Director.
“By partnering with companies like STL, we are advancing the necessary infrastructure to cement this status.”
Semiconductor chips have a wide range of applications, including energy and power systems, automotive applications, biotechnology, agriculture, and Internet of Things applications.
The growing demand for semiconductors presents significant opportunities for US technology exports to fabrication facilities in partner countries like Kenya.
“USTDA’s assistance will unlock significant investment opportunities for STL and the Kenya semiconductor ecosystem, fostering extensive bilateral and private sector engagement among the US, Kenya, and the broader continent,” said Dr. Anthony Githinji, STL’s Founder and CEO.
USTDA’s assistance aligns with the Biden-Harris Administration’s priorities, including the CHIPS and Science Act of 2022, the Partnership for Global Infrastructure and Investment, and the Digital Transformation with Africa Initiative.
The Agency’s programming also follows through on commitments made at the U.S.-Africa Leaders Summit in December 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 US$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 US$8.5 billion to expand its high-end fab capacity.
Taiwan’s chip maker, TSMC was awarded US$6.6 billion while South Korea’s Samsung has been awarded US$6 billion. These are the top three highest grants under the act yet.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
