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US to fund Kenya's tech growth under Chips and Science Act

US President Joe Biden holds talks with his Kenyan counterpart William Ruto at the White House on May 23, 2024. (Photo: PCS)

By Hanifa Adan | Friday, May 24, 2024

This strategic dialogue occurs amid increasing global cooperation on safeguards for emerging technologies, particularly artificial intelligence, which experts warn could threaten privacy and amplify the risk of disinformation.

The United States is set to make Kenya the first African nation to benefit from the Chips and Science Act, according to a senior White House official as reported by Bloomberg.

The US Congress 2022 approved the Chips and Science Act to boost American semiconductor output with $52.7 billion (Sh6.89 trillion) allocated for research and manufacturing subsidies. This effort is part of a broader strategy by the US to reclaim its dominance in the semiconductor industry, which currently relies heavily on East Asia for 75 per cent of global production.

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The $280 billion (Sh 37.1 trillion) landmark law, aimed at bolstering domestic chipmaking through billions in subsidies and incentives, marks a significant shift in global semiconductor dynamics.

On Wednesday, President Joe Biden welcomed Kenyan President William Ruto and a delegation of prominent executives to the White House, declaring that the US and Kenya are "launching a new era of technological cooperation" encompassing cybersecurity, artificial intelligence, clean energy, and semiconductor technology.

"We need you to help us strengthen the supply chains and the industries of the future," Biden added during the meeting.

Commerce Secretary Gina Raimondo discussed the specifics of a new semiconductor partnership with Kenya, a topic that was highlighted during the discussions. According to the official, this partnership falls under the International Technology Security and Innovation Fund and aims to bolster Kenya's semiconductor assembly, testing, and packaging sector. This collaboration is intended to enhance the security of global supply chains and support US chip manufacturing efforts.

This strategic dialogue occurs amid increasing global cooperation on safeguards for emerging technologies, particularly artificial intelligence, which experts warn could threaten privacy and amplify the risk of disinformation.

President Ruto highlighted Kenya's burgeoning tech industry, stating, "The space around artificial intelligence, and the space around cybersecurity and the investments that come with it, we are expanding our footprint in the digital space"

In a related development, the US Agency for International Development announced a $32 million (Sh4.2 billion) investment to promote science, technology, engineering, and mathematics (STEM) education in Kenya. This announcement was made during President Ruto's visit to Spelman College, a historically Black college for women.

The US share of the global semiconductor market has dramatically decreased from 37 per cent in 1990 to just 12 per cent in 2020.