Joe Biden signs $280 billion Chips & Science Act to boost US competitiveness with China

US President Joe Biden on Tuesday, Aug 9 signed $280 billion legislation, pumping $53 billion into research and manufacturing of semiconductor chips in the United States in an attempt to surpass its rival China. The multibillion-dollar bill labelled CHIPS and Science Act, which is Creating Helpful Incentives to Produce Semiconductors for America Act,  aims to boost spending in Washington's high-tech manufacturing sectors for the domestic production of microchips. The semiconductor chips are a hard-to-make component found in nearly every modern machinery and component, including defence weaponry.

Bill will help US 'win economic competition in 21st century'

According to a White House statement, the bill would help the United States "win the economic competition in the 21st century" and had also earlier labelled it as a "game changer". The newly signed bill ensures the continuous supply of semiconductors that power automobiles, computers, and other appliances including medical devices and cars to computers and weapons systems. 

"Today America is delivering, and I honest to God believe that 50, 75, 100 years from now, people who will look back on this week, they'll know that we met this moment," Biden said ahead of signing the bill. 

Biden signed the bill at a ceremony which was attended by chief executives of Lockheed Martin, Intel, HP, Micron, and Advanced Micro Devices, along with union leaders and lawmakers. The $280 billion bipartisan bill that will boost domestic high-tech manufacturing includes the $10 billion investment in regional technology hubs across the US. It also additionally includes a nearly 25% investment tax credit for the manufacturing of semiconductors and related equipment within the domestic sector. Biden said of the bill that it is expected to incentivize investments in the American semiconductor industry, and will comprehensively ease the reliance on overseas supply chains for cutting-edge goods without naming China in particular. 

“We are going to invest it in America,” Biden said Friday. “We’re going to make it in America. We’re going to win the economic competition of the 21st century in America.”

As Biden signed the bill the US Qualcomm and GlobalFoundries announced that it is investing in the whopping $4.2 billion plan for the expansion of an upstate New York chip plant. The bill also authorizes $100 billion in spending into the semiconductor industry extended over the period of five years, including on scientific research. More than $80 billion is also allocated to the National Science Foundation.