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By Mahesh Zurale, Senior Managing Director and Lead Advanced Technology Centres in India, Accenture

1. How does Accenture define metaverse?Today, there are various definitions of the metaverse, and a lot of early efforts are being built with the focus on how to get it right each with different platforms, partners, and technologies at the core. Accenture has a distinct view: the metaverse is a continuum that will entirely transform the way we live and work in the future. Today, we increasingly see the convergence of multiple technologies (ranging from gaming engines to digital twins and extended reality) to address real-world problems in new ways and create transformational business value across the enterprise. That is why we define the metaverse as a continuum, as its evolving and expanding across multiple dimensions and transforming every aspectof business.

2. What are the building blocks of Metaverse?We believe the metaverse will impact every part of every business, and organizations have a unique opportunity to act boldly and compete in tomorrows market. In our latest Technology Vision 2022 report, we have highlighted the four building blocks of the Metaverse Continuum that will be foundational to organizations as they set the stage for the future. The first one is WebMe, which looks at the metaverse as the next evolution of the internet where users can not only browse digitally but also participate in a shared experience spanning across both the physical and virtual worlds.

The second trend is called Programmable World, which refers to the infusion of technology into our physical environments. It focuses on how 5G, cloud, and immersive technologies such as augmented reality (AR), extended reality (XR), and virtual reality (VR) are enabling better control, automation, and personalization.

The third trend The Unreal gives an overview of how AI-generated synthetic data and images are blurring the difference between the real and the unreal. While synthetic content will enable more seamless experiences, prioritizing authenticity will be key to preventing deep fakes and malicious attacks. The fourth trend Computing the Impossible is about exploring the outer limit of what is computationally possible and how it is being disrupted as the next generation of machines emerge. These machines quantum, HPC, and biology-inspired will help businesses solve challenges that were deemed impossible earlier.

3. How are AI, quantum computing, Web3, and the metaverse shaping the world of business?AI, quantum computing, Web3, and the metaverse will fundamentally change business processes, including customer interactions, day-to-day operations, working style, and products and services. In fact, 42% of executives surveyed in our Technology Vision 2022 report have cited the metaverse as transformational, whereas 71% believe it will have a positive impact on their organization. Major companies will shift part of their operations to the metaverse to engage with their employees in exciting new ways. At Accenture, we have built what we believe is the largest enterprise metaverse on the planet the Nth Floor to offer new joiners an immersive onboarding experience and employees new ways to learn and collaborate.

Businesses across sectors including retail, consumer products, financial, health, industrial, and manufacturing will use metaverse-related technologies to reimagine and elevate customer experiences. For example, in 2021 Gucci created The Gucci Garden Experience to sell virtual products and sold a virtual-only digital twin of a Gucci purse at a higher price than its real-world counterpart.

4. How can enterprises drive maximum value from the Metaverse?Organizations need to start prioritizing their technology investments to build a foundation in the metaverse. It is important to first identify and close the existing gaps in their digital transformation, whether it is delayed cloud adoption or the lack of a robust security infrastructure. Another area that organizations need to consider is building skills in AI, blockchain, gaming, security, VR, and XR to prepare for the metaverse. The other in-demand skills will include distributed ledger experts and token economists who understand the economics of creating tokenized products. Additionally, strategic partnerships with technology experts will be crucial to support enterprises in their journey towards themetaverse.

5. What are the security measures that companies should incorporate to operate in the Metaverse?As metaverse gains momentum globally, it not only presents new opportunities for businesses to explore, innovate and create new products/services but also brings forth concerns around data, privacy, and safety. Establishing a responsible metaverse from the start is essential to fostering trust in the underlying technology and experiences to drive adoption and user acceptance.

For example, organizations engaging in the metaverse require a comprehensive approach to security. If not, the absence of a standard framework will allow threat actors to take advantage of potential vulnerabilities and gain access to critical user data, which could result in security breaches, ransomware attacks, and identity theft. Organizations need to address the cybersecurity gaps early and proactively map user journeys across the metaverse.

Deploying advanced security solutions that can not only assess the potential risks but also spot and identify threats and breaches will be key to making the new system of place digitally secure. As with any technology, a strategic approach must be taken while deploying solutions in the metaverse to gain the maximum benefit without compromising on security.

6. How Metaverse will change the dynamics of business in the future?Technologies like 5G and cloud that lay the foundation of the metaverse have already proven to deliver improved efficiency, boost operations maturity, and drive business innovation. For instance, Shell, through its AR Remote Assist, enables its workers in the field to get assistance from experienced technicians across the world, allowing real-time, collaborative discussions amongst its teams. This is just one example of how the metaverse will enable the adoption of people-centric technologies to offer new ways of working and collaboration.

With the use of digital twins, companies can create virtual replicas of their physical offices and provide employees the flexibility to work from anywhere. Similarly,extended reality has the potential to make employee learning experiences more immersive, resulting in better retention and improved performance. While the metaverse is still at a nascent stage, it presents immense business potential. Companies need to reimagine their business now to capitalize on the possibilities the future will bring.

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Are enterprises ready for the next wave of digital change? - Express Computer

2020 has been a hectic year with the coronavirus pandemic affecting our lives in an unprecedented manner. However, with scientists and researchers working tirelessly, it was a great year for technological advancements and achievements. The breakthrough technologies mentioned in the article will surely affect our lifestyle in the years to come.

These are gifts of technology that have been the highlight of the first year of this decade:

You may be aware of the fact that the internet we use today is extremely vulnerable to hacks and exploits by people with questionable intentions. For the past few years, data scientists and analysts have been working on creating the first quantum internet that would be completely secure from hackers.

The Delft University of Technology, one of the big organizations working on this project, has successfully developed this technology. In a presentation, Physicist Ronald Hanson at the Delft University of Technology along with his collaborators linked three devices in such a way that any two devices in the network ended up with mutually entangled quantum bits.

These quantum bits are used for transmitting information and communicating with other devices the use of entanglement makes it almost impossible for hackers to snoop around the user devices.

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In this digital age, the use of cash is continuously declining. Cash transactions need intermediaries and in each stage, there is a considerable markup. On the other hand, digital money, like Libra by Facebook exists only in its digital form, which can lead to a breach of financial privacy.

Digital money can be beneficial for instantaneous transactions and may also mean that parties would have to go through minimal or no intermediaries at all. Like cryptocurrencies using blockchain technology, which is decentralized, digital currency can potentially break the global financial system into small fragments.

Though many have dreamed of it, using a quantum computer to outperform classical computers cannot be implemented daily just yet. Google has developed a Sycamore quantum processor, which can be used to achieve quantum supremacy.

In a test, Sycamore could determine a set of randomly distributed numbers in three minutes and 20 seconds, which would have taken 10,000 years for a classical computer. Even though the results of the tests and calculations were impressive, we are still years away from using quantum computers to solve problems that classical computers cannot handle.

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Differential privacy can help organizations collect and share collected user data while keeping their identities private. The 2020 US Census, which is the largest-scale application would use differential privacy while distributing population data.

This technology aims to maximize data usage without disclosing the user identity. Differential privacy ensures the unavailability of raw data to database managers or data scientists and allows organizations to tackle privacy-related problems and build trust.

With the help of improved computing capabilities of newly developed processors, scientists can now make proper reports of how climate changes can affect severe weather events. Civilians and the military can now prepare in advance in case of natural disasters due to weather conditions.

Further, it also gives enough evidence to hold responsible authorities and the government responsible for not taking necessary steps when needed. Climate change can cause immeasurable loss of lives and properties, and proper climate change attributions would help the people take proper and necessary precautionary measures.

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With thousands of people worldwide having unique ailments and disorders, traditional medication cannot help them all. Have you ever wondered how this problem can be solved by producing medication for a particular case? This way, scientists and doctors can help cure rare genetic disorders and rare diseases.

The dream of achieving hyper-personalized medication is not too far and will bring hope and joy to several people all over the world. Medicines tailored to the exact needs of a single patient will treat and cure ailments that went untreated earlier. This was without a doubt, one of the best technological advancements in the field of medicine.

Aiming to provide high-speed internet services all over the world, satellite mega-constellations projects were a great success. It is the much-awaited solution to unreliable WiFi signals and fluctuating cellular networks. Satellite mega-constellations would enable global connectivity for almost everyone with a proper device.

However, the development and implementation of this technology bring a few major concerns. Space will be littered with several small satellite mega-constellations to bring unhindered connectivity to everyone.

Also, in the absence of a set of international rules and regulations and authority to enforce them, major industry leaders can end up exploiting its uses. This would lead to major problems and lead to unbridled chaos.

Long gone are the days when users would have to depend on heavy computer setups to use powerful AI algorithms. Nowadays, handheld devices like mobile phones and household appliances are capable of using AI programs without even interacting with the cloud.

With the development of tiny AI, developers and software enthusiasts can work to shrink the size of existing and new AI models without losing their efficiency and functionalities. Accessing AI models from our devices involve no latency due to the lack of interaction with the cloud and hence there are fewer privacy-related concerns.

Currently, big tech companies like Google, Apple, Amazon as well as IBM are leading the market with the application and implementation of tiny AI technology.

Since ancient times, adventurers, researchers, and philosophers have spent their lives finding the answer to their aging problems. The wait is almost over as doctors and scientists have developed drugs that can help slow down your aging.

These drugs can be very useful for patients suffering from diseases like cancer, dementia, and heart-related problems by slowing down the aging process. Though a lot of research has not been conducted yet, initial trials have proved these drugs to be safe for humans.

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Working with technologies like machine learning and artificial intelligence, scientists and data scientists are using AI to discover molecules that can affect the healthcare industry greatly.

With the discovery of the antibiotic Halicin using Artificial Intelligence, medical science has gained a golden opportunity to develop exponentially. Though using AI for healthcare is not new, this was the first time AI has identified a completely new antibiotic variety without any human intervention or assumptions.

Though this may be a very expensive process due to the rarity of the molecules in question, AI can help bring down the cost of production to a great extent. It can evaluate and use molecules effectively and efficiently, which might not be possible for human scientists.

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10 Breakthrough Technologies That Is Going To Change The Future - Postoast

"In essence, the quantum computing industry has yet to demonstrate any practical utility..."Seriously Though

Oxford quantum physicist Nikita Gourianov tore into the quantum computing industry this week, comparing the "fanfare" around the tech to a financial bubble in a searing commentary piece for the Financial Times.

In other words, he wrote, it's far more hype than substance.

It's a scathing, but also perhaps insightful, analysis of a burgeoning field that, at the very least,still has a lot to prove.

Despite billions of dollars being poured into quantum computing, Gourianov argues, the industry has yet to develop a single product that's actually capable of solving practical problems.

That means these firms are collecting orders of magnitude more in financing than they're able to earn in actual revenue a growing bubble that could eventually burst.

"The little revenue they generate mostly comes from consulting missions aimed at teaching other companies about 'how quantum computers will help their business,'" Gourianov wrote for the FT, "as opposed to genuinely harnessing any advantages that quantum computers have over classical computers."

Contemporary quantum computers are also "so error-prone that any information one tries to process with them will almost instantly degenerate into noise," he wrote, which scientists have been trying to overcome for years.

Gourianov also took aim at other assumptions about the field, arguing that fears over quantum computers being able to crack even the securest of cryptographic schemes are overblown.

Notably, the piece comes just weeks after a group of researchers found that a conventional computer was indeed able to rival Google's Sycamore quantum computer, undermining the tech giant's 2019 claims of having achieved "quantum supremacy."

Despite the industry's less-than-stellar results, investors are still funneling untold sums into quantum computing ventures.

"In essence, the quantum computing industry has yet to demonstrate any practical utility, despite the fanfare," Gourianov wrote. "Why is then so much money flowing in? Well, it is mainly due to the fanfare."

The money, he argues, is coming from investors who typically don't have "any understanding of quantum physics," while "taking senior positions in companies and focusing solely on generating fanfare."

In short, Gourianov believes it's only a matter of time until the "bubble will pop" and the "funding will dry up" at which point, it's already too late.

READ MORE: The quantum computing bubble [Financial Times]

More on quantum computers: UK Military Wants to Install Quantum Computers in Tanks for Some Reason

Originally posted here:
Oxford Physicist Unloads on Quantum Computing Industry, Says It's Basically a Hype Bubble - Futurism

Every country is vying to get a head start in the race to the worlds quantum future. A year ago, the United States, the United Kingdom, and Australia teamed up todevelopmilitary applications of digital technologies, especially quantum computing technologies. That followed the passage in 2019 of the National Quantum Initiative Act by the U.S. Congress, which laid out the countrys plans to rapidly create quantum computing capabilities.

Earlier, Europe launched a $1 billion quantum computing research project, Quantum Flagship, in 2016, and its member states have started building a quantum communications infrastructure that will be operational by 2027. In like vein, Chinas 14th Five Year Plan (2021-2025) prioritizes the development of quantum computing and communications by 2030. In all, between 2019 and 2021 China invested as much as $11 billion, Europe had spent $5 billion, the U.S. $3 billion, and the U.K. around $1.8 billion between to become tomorrows quantum superpowers.

As the scientific development of quantum technologies gathers momentum, creating quantum computers has turned into apriority for nations that wish to gain the next competitive advantage in the Digital Age. Theyre seeking this edge for two very different reasons. On the one hand,quantum technologies will likely transform almost every industry, from automotive and aerospace to finance and pharmaceuticals. These systems could create fresh value of between $450 billion and $850 billion over the next 15 to 30 years, according to recentBCG estimates.

On the other hand, quantum computing systems will pose a significant threat to cybersecurity the world over, as we argued in an earliercolumn.Hackers will be able to use them to decipher the public keys generated by the RSA cryptosystem, and to break through the security of any conventionally-encrypted device, system, or network. It will pose a potent cyber-threat, popularly called Y2Q (Years to Quantum), toindividuals and institutions as well as corporations and country governments. The latter have no choice but to tacklethe unprecedented challenge by developing countermeasures such as post-quantum cryptography, which will itself require the use of quantum systems.

Countries have learned the hard way since the Industrial Revolution that general-purpose technologies, such as quantum computing, are critical for competitiveness. Consider, for instance, semiconductor manufacturing, which the U.S., China, South Korea, and Taiwan have dominated in recent times. When the COVID-19 pandemic and other factors led to a sudden fall in production over the last two years, it resulted in production stoppages andprice increases in over 150 industries, including automobiles, computers, and telecommunications hardware. Many countries, among the members of theEuropean Union, Brazil, India, Turkey, and even the U.S., were hit hard, and are now trying to rebuild their semiconductorsupply chains. Similarly,China manufacturesmost of the worlds electric batteries, with the U.S. contributingonly about 7% of global output. Thats why the U.S. has recently announcedfinancial incentivesto induce business to create more electric battery-manufacturing capacity at home.

Much worse could be in store if countries and companies dont focus on increasing their quantum sovereignty right away. Because the development and deploymentof such systems requires the efforts of the public and private sectors, its important for governments to compare their efforts on both fronts with those of other countries.

The U.S. is expected to be the global frontrunnerin quantum computing, relying on its tech giants, such as IBM and Google, to invent quantum systems as well as numerous start-ups that are developing software applications. The latter attract almost 50% of the investments in quantum computing by venture capital and private equity funds, according toBCG estimates. Although the U.S. government has allocated only $1.1 billion, it has created mechanisms that effectively coordinate the efforts of all its agencies such as the NIST, DARPA, NASA, and NQI.

Breathing down the U.S.s neck: China, whose government has spent more on developing quantum systems than any other. . Those investments have boosted academic research, with China producing over 10% of the worlds research in 2021, according toour estimatessecond only to the U.S. The spillover effects are evident: Less than a year after Googles quantum machine had solved in minutes a calculation that would have taken supercomputers thousands of years to unravel, the University of Science and Technology of China (USTC) had cracked a problem three times tougher. As of September 2021, China hadnt spawned as many startups as the U.S., but it was relying on its digital giants such as Alibaba, Baidu, and Tencent to develop quantum applications.

Trailing only the U.S. and China, the European Unionsquantum computing efforts are driven by its member states as well as the union. The EUsQuantum Flagshipprogram coordinates research projects across the continent, but those efforts arent entirely aligned yet. Several important efforts, such as those ofFranceandGermany,run the risk of duplication or dont exploit synergies adequately. While the EU has spawned several startups that are working on different levels of the technology stacksuch as FinlandsIQM and FrancesPasqalmany seem unlikely to scale because of the shortage of late-stage funding. In fact, the EUs startups have attracted only about one-seventh as much funding as their American peers,according toBCG estimates.

Finally, the U.K. was one of the firstcountries in the world to launch a government-funded quantum computing program. Its counting on itseducational policiesand universities;scholarships for postgraduate degrees; and centers for doctoral training to get ahead. Like the EU, the U.K. also has spawned promising start-ups such asOrca,which announced the worlds smallest quantum computer last year. However, British start-ups may not be able to find sufficient capital to scale, and many are likely to be acquired by the U.S.s digital giants.

Other countries, such as Australia, Canada, Israel, Japan, and Russia are also in the quantum computing race, and could carve out roles for themselves. For instance, Canada is home to several promising startups, such asD-Wave, a leader in annealing computers; whileJapanis using public funds to develop a homegrown quantum computer by March 2023. (For an analysis of the comparative standings and challenges that countries face in quantum computing, please see the recentBCG report.)

Meanwhile, the locus of the quantum computing industry is shifting to the challenges of developing applications and adopting the technology. This shift offers countries, especially the follower nations, an opportunity to catch up with the leaders before its too late. Governments must use four levers in concert to accelerate their quantum sovereignty:

* Lay the foundations.Governments have to invest more than they currently do if they wish to develop quantum systems over time, even as they strike partnerships to bring home the technology in the short run. Once they have secured the hardware, states must create shared infrastructure to scale the industry. The Netherlands, for instance, has set upQuantum Inspire, a platform that provides users with the hardware to perform quantum computations.

* Coordinate the stakeholders.Governments should use funding and influence to coordinate the work of public and private players, as theU.S. Quantum Coordination Office, for instance,does. In addition, policymakers must connect stakeholders to support the technologys development. Thats how the U.S. Department of Energy, for instance, came to partner with the University of Chicago; together, theyve set up anacceleratorto connect startups with investors and scientific experts.

* Facilitate the transition. Governments must support businesss transition to the quantum economy. They should offer monetary incentivessuch as tax credits, infrastructure assistance, no- or low-interest financing, and free landso incumbents will shift to quantum technologies quickly. TheU.K., for instance, hasrecently expanded its R&D tax relief scheme to cover investments in quantum technologies.

* Develop the business talent.Instead of developing only academics and scientists, government policies will have to catalyze the creation of a new breed of entrepreneurial and executive talent that can fill key roles in quantum businesses. To speed up the process, Switzerland, for instance, has helped create amasters programrather than offering only doctoral programs on the subject.

Not all general-purpose technologies affect a countrys security and sovereignty as quantum computing does, but theyre all critical for competitiveness. While many countries talk about developing quantum capabilities, their efforts havent translated into major advances, as in the U.S. and China. Its time every government remembered that if it loses the quantum computing race, its technological independence will erodeand, unlike with Schrdingers cat, theres no doubt that its global competitiveness will atrophy.

ReadotherFortunecolumns by Franois Candelon.

Franois Candelonisa managing director and senior partner at BCG and global director of the BCG Henderson Institute.

Maxime Courtauxis a project leader at BCG and ambassador at the BCG Henderson Institute.

Gabriel Nahasis a data senior scientist at BCG Gamma and ambassador at the BCG Henderson Institute.

Jean-Franois Bobier is a partner & director at BCG.

Some companies featured in this column are past or current clients of BCG.

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The U.S., China, and Europe are ramping up a quantum computing arms race. Heres what theyll need to do to win - Fortune

Silicon Valley owes its success to the invention of a computer chip that is now made almost exclusively overseas.

Can $52.7 billion lure the chip, the electronic heart of everything from cell phones to F-15 fighter jets, back home?

The CHIPS and Science Act, signed by President Biden in August, aims to inspire a manufacturing revival that is crucial to our national defense, economic security and future technical innovation.

Already, the domestic semiconductor industry is on a tear, with new megafactory construction underway in Arizona, Texas, New Mexico and soon Ohio reflecting manufacturers confidence that the U.S. will help pay for them.

Yet none of the planned megafabs will be built here in the birthplace of the integrated circuit, or chip, where in 1959 legendary entrepreneur Robert Noyce strung transistors together on sheets of silicon in a two-story warehouse built of tilt-up concrete slabs in Mountain View.

To be sure, California remains a leader in more sophisticated parts of the chip supply chain, such as research, design, manufacturing tools and the sophisticated automation devices that analyze chip performance. And those chip-related businesses could get a funding boost too.

Three of the five top chip equipment manufacturers Lam Research, Applied Materials and KLA Corporation are based in the Bay Area. So are powerful chip designers, such as Nvidia, Apple and Google. Synopsis and other companies provide the software to design the chips. Stanford, UC Berkeley and San Jose State conduct world-class research.

Were very well-positioned to accelerate the research and development around microelectronics and apply them to new technologies. On those two bases, California is well positioned to compete for a portion of these federal funds, said Peter Leroe-Muoz, who specializes in tech policy for the Silicon Valley Leadership Group.

Our strength will be growing the footprint that we already have.

Historically, Silicon Valley was where you built the fab, the factory that crafts chips out of silicon, said Michael Hochberg, president of Luminous Computing, which hopes to use CHIPS Act funding to build the worlds most powerful, scalable Artificial Intelligence-based supercomputer at the companys facility in Santa Clara.

Now, he said, if you want to do stuff thats best in class, you have to work with companies from overseas.

Fifty years ago, offshoring in Asia made sense. It reduced costs and helped U.S. companies stay competitive against international rivals. Those Asian countries invested in their factories. According to Micron, it is 35% to 45% cheaper to build a fab in a low-cost Asian nation than in the U.S., primarily because of government support.

Now, the most advanced chips are all made by the behemoth Taiwan Semiconductor Manufacturing Company, or TSMC. Its the exclusive supplier of Apples silicon processors for iPhones and Mac PCs, as well as the manufacturing partner of other major U.S. companies like AMD, Broadcom and Qualcomm.

The U.S. is the largest consumer of chips in the world. But we make only 12% of what we use.

With growing U.S.-China tensions, government officials are worried. If taken by force, Taiwans factory would be rendered inoperable and wed lose the chips that power our economy and defense, according to the Center for Strategic and International Studies, a Washington D.C.-based nonprofit policy research organization that studies the future of national security.

The pandemic-related supply chain disruptions revealed the vulnerability, causing a chip shortage that adversely affected at least 170 industries, especially automakers.

Rebooting the American supply chain will also protect our future innovation, said electrical engineering professor H.-S. Philip Wong, director of Stanfords Nanofabrication Facility. Manufacturers need research so they can build the best new product. Researchers need manufacturers to realize their ideas.

The semiconductor is foundational to many of the technologies that we are counting on going forward, including Artificial Intelligence, quantum computing, 5G and so on, said Wong.

So to have American leadership, he said, you need to have leadership in semiconductors.

According to the Department of Defense, early-stage research cant be proven in the facilities that we have here at home instead, U.S. engineers must go to Asia to test and prove an idea.

Similarly, startups are bedeviled by a chicken-and-egg problem. Without access to a factory, they cant prove commercial promise. Without proof, they cant get into a factory.

The CHIPS and Science Act aims to create a new world order. The $280 billion package includes $39 billion to help with the financing of semiconductor fabrication, assembly, testing and advanced packaging, as well as $13.2 billion toward research and workforce development. It also provides a 25% investment tax credit for capital costs of manufacturing equipment.

Its not yet known how the funds will be spent. Its up to the departments of Commerce, State and Defense to craft the details and decide how the money will be awarded.

Building a factory where billions of microscopic transistors are squeezed onto ever-smaller computer chips is a complex project.

And its expensive. Construction of a new factory takes about three to five years and costs a stunning $10 billion to $12 billion per site, about seven times as much as sports facilities such as Levis Stadium or Chase Center.

The CHIPS Act is likely to boost manufacturing in regions where land and energy are cheap. Theres a specific provision of the Act that directs some spending to places that arent coastal research hubs.

This past week, Micron Technology announced it will build a $15 billion chip factory near its headquarters in Boise, Idaho, and is considering a plan to spend as much as $160 billion on a new factory in central Texas. Two new Intel factories will soon be under construction near Columbus, Ohio, each costing $10 billion. In Arizona, Taiwan Semiconductor Manufacturing Company is investing $12 billion in an advanced-manufacturing center. Texas is the site of Samsungs new $17 billion chip factory. Indiana was selected by SkyWater for a $1.8 billion facility.

To attract Intel, Ohio offered the company about $2 billion worth of incentives, including $700 million for roadwork and water infrastructure upgrades. In Phoenix, where Taiwans TSMC is building its new plant, the city government promised to spend $205 million in public infrastructure improvements. In the small Texas town of Taylor, Samsung will pay no corporate income tax.

Californias welcome is more modest. Officials say they are recruiting but the states support is currently limited to tax credits through the California Competes Program, which offers up to $180 million to qualified applicants. Startups complain thats less useful than other incentives because they dont yet have profits to deduct against.

We have already begun and will continue working with companies to locate their CHIPS-eligible projects here in California, said Heather Purcell of the Governors Office of Business and Economic Development. We are the state that is known for innovation, home to the most high-quality, diverse workforce in the nation.

But experts say that new plants are unlikely to be erected here. Manufacturing is stifled by several factors: high real-estate costs, unreliable water, expensive electric bills and stiff regulations. In general, manufacturing has plummeted in California. Since 1990, the state has lost a third of its factory jobs.

A semiconductor fab needs a lot of land, a lot of water and a lot of electricity, said electrical engineering professor Hiu Yung Wong of San Jose State University. We might not be as competitive as other states.

But the biggest challenge is finding people with the right skill sets, he said. Many of the most-talented students go to computer science, where it is much easier to earn a higher income. They go to Google, they go to Facebook.

Silicon Valley became Software Valley, said Dan Hutcheson of TechInsights in San Jose. California is not oriented toward manufacturing. Politicians have this attitude, We dont care. We dont have to.'

Furthermore, some California cities are unlikely to want factories, infamous for their toxic chemicals, he said. Officials may fear fire risk or a repeat of Fairchild Semiconductors massive 1981 pollution of a cancer-causing solvent TCE in drinking-water wells in San Jose.

California may never again return to its industrial heyday, said experts.But federal funding could help turbocharge our many other strengths.

While awaiting the chance to apply for CHIPS funding, Santa Claras Luminous is already readying a production line that will produce its initial supercomputers.

Were building as many of our wafers as we can here in the U.S., said Hochberg, and were planning to do all of this packaging, testing and assembly here in Silicon Valley.

Anything is possible, he said, with enough focus and desire.

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The U.S. is bringing chip-making home. Is California ready? - The Mercury News