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| Photo Credit: AP. |
President Joe Biden Tuesday signed a $280 billion bipartisan semiconductor act to boost investment and help the United States better compete with China.
The U.S is
seeking less reliance on Asian countries with the signing of the measure which
will boost domestic high-tech manufacturing of semi-conductor chips needed to
power computers, smartphones, automobiles and other electronics as well as the
military. The law sets aside $52 billion to boost the U.S. computer chip
sector.
CHIPS industry CEOs announced $50 billion in new investments
The event
was attended by industry CEOs who announced almost $50 billion in new
investments led by Micron Technology Inc., with a $40-billlion investment in
memory chip manufacturing, Los Angeles Times reports. The White House said the Micron
investment would create additional 40,000 new jobs.
“The future
of the chip industry is going to be made in America,” Biden said in a Rose
Garden ceremony Tuesday, according to The Associated Press.
The president
noted that the bill was “a once-in-a-generation investment in America itself,”
moments before he signed the legislation into law, according to Los Angeles
Times.
Qualcomm and
GlobalFoundries will soon unveil a $4.2 billion expansion of an upstate New
York chip plant, according to The Associated Press.
What does the CHIPS and Science Act have for Americans?
“The CHIPS
and Science Act is going to inspire a whole new generation of Americans to
answer that question: What next?” Biden said Tuesday during the signing
ceremony, according to The Associated Press. “Decades from now, people will
look back at this week and all we passed and all we moved on, that we met the
moment at this inflection point in history.”
Mr. Biden
stressed that the United States was ready to build its chip industry saying, “We
know there are those ... who seek division instead of strength and unity, who
tear down rather than build up,” Biden declared, according to Los Angeles Times.
“Today is the day for builders. Today America is delivering.”
How did the Senate and House pass the CHIPS legislation?
The House
passed the CHIPS legislation 243 to 187 after the Senate passed the measure 64 to 33
in a clear bipartisan system.
The U.S. has
struggled to keep up with demands for semiconductors needed to produce badly
needed electronics, computer and automobile. Toyota reportedly cut car
production quota by 50,000 in July 2022 due to a lack of semiconductors,
according to Washington Examiner.
The bill
will encourage semiconductor companies to build chip plants in the United
States by providing $280 billion in funding which includes federal grants and
tax breaks for companies that construct their chip facilities in the U.S., The
Associated Press reported.