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Joe Biden Signed Bill To Boost US production of Microchips

Joe Biden Signed Bill To Boost US production of Microchips
Photo Courtesy: Reuters

US President Joe Biden signed a landmark bill to deliver $52.7 billion in subsidies for US semiconductor production and research and to expand efforts to make the United States more competitive with China’s science and technology efforts. Joe Biden said, “The future will be made in America.” He called the project the measure of once-in-a-generation investment in America itself. So, the article is about Joe Biden Signed Bill To Boost US production of Microchips.

Mr. Biden glorified investments that chip companies are making even though it remains unclear when the US Commerce Department will write rules for inspecting grant awards and how long it will take to underwrite undertakings. Some Republicans converged with Mr. Biden on the White House lawn to observe the agreement of the chips bill that was years in the making in Congress. The Chief Executives of Micron, Intel, Lockheed Martin, HP, and Advanced Micro Devices were present at the signing, as did governors of Pennsylvania and Illinois, the mayors of Detroit, Cleveland, and Salt Lake City, and lawmakers.

The White House stated the bill’s passage was spurring new chip investments. It noted that Qualcomm agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries’ New York factory, conveying its total commitment to $7.4 billion in purchases through 2028. The White House also touted Micron declaring a $40 billion investment in memory chip manufacturing, which would increase US market share from 2% to 10%, an investment it said was planned with anticipated grants from the chips bill.

However, the bill also includes a 25% investment tax credit for chip plants, estimated to be worth $24 billion. The legislation authorizes $200 billion over ten years to boost US scientific research and compete with China. Congress would still need to pass individual appropriations legislation to fund the investments. China had lobbied against the semiconductor bill. The Chinese Embassy in Washington said China firmly opposed it, calling it reminiscent of a Cold War mentality. Mr. Biden mentioned that the United States needs chips for key weapons systems like Javelin missiles. 

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