US President Joe Biden signs bill to boost US chipmakers as a competition to China
President Joe Biden signed a bipartisan bill on Tuesday that aims to boost the United States’ competitiveness with China by spending billions of dollars on local semiconductor production and scientific research. “The future is going to be made in America,” Biden said, calling the measure “a once-in-a-generation investment in America itself.” The measure allots USD 52 billion to help the computer chip industry in the United States.
The measure is intended to ease a recurrent shortfall that has affected everything from automobiles to guns, washing machines, and video games. The package, a rare big entry into US industrial policy, also provides a $24 billion investment tax credit for semiconductor facilities.
The measure allocates $200 billion over ten years to promote scientific research in the United States in order to compete with China. To fund such investments, Congress would still need to adopt separate appropriations legislation.
The country is not alone in its industry investments. The European Union said this spring that it will invest more than €40 billion in computer chip manufacture, while China has increased its investments in research and technology. The Chinese Embassy in Washington has lobbied against the semiconductor law, calling it a “Cold War mindset.”
Business organisations have long advocated for increased government assistance, stressing the need to minimise dependency on China. The urgency of their requests was heightened by a global scarcity of microchips. The United States now generates around 10% of the world’s supply of semiconductors, which are essential in everything from automobiles to mobile phones, down from over 40% in 1990.
Biden praised semiconductor firms’ commitments, despite the fact that it is unknown when the US Commerce Department would create regulations for vetting grant decisions and how long it will take to fund projects.
