President Joe Biden on Tuesday signed the CHIPS ACT, which provides US$52.7 billion in subsidies for semiconductor production and research in the United States. The bill will also boost efforts to increase U.S. competitiveness vis-à-vis China.
President Biden called the measure “a once-in-a-generation investment in America itself.”
Some Republicans participated in the signing of the chip bill. Other dignitaries included the CEOs of Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices, governors of Pennsylvania and Illinois, mayors of Detroit, Cleveland and Salt Lake City, and other lawmakers.
The bill also includes a 25% investment tax credit for chip plants worth an estimated US$24 billion. The bill authorizes US$200 billion over 10 years to boost scientific research in the U.S. in order to better compete with China, although Congress has yet to pass a law authorizing funds to finance those investments.
U.S. lawmakers cited security risks and huge problems in the global supply chain that have hampered global manufacturing as reasons why they supported the law, even though they opposed hefty subsidies for private companies.
They also pointed to the high level of investment by China and the European Union, which has led to billions of euros in incentives for their chip companies.
The sources for this piece include an article in Reuters.