President Biden signed the Chips and Science Act into law on Tuesday, granting more than $200 billion to improve American manufacture of semiconductor computer chips and lessen the United States’ dependence on foreign manufacturing of the components that power practically all aspects of contemporary technology.
Following months of talks, the law was enacted by both houses of Congress last month with bipartisan support. The bill was a high priority for the Biden administration, with senior officials warning Congress ahead of time that failing to act would have serious consequences for national security and the economy.
“We know there are some who want power rather than ensuring the future, those who seek division rather than strength and solidarity, those who tear down rather than build up,” Mr. Biden said at a ceremony on the White House’s South Lawn. “Today is a building day. America is now delivering.”
The gathering commemorating the measure’s passage was attended by congressional leaders, representatives from the corporate sector, and state and local elected officials. According to a White House official, those in attendance included the CEOs of Intel, HP, and Lockheed Martin, the governors of Illinois and Pennsylvania, and mayors from Ohio, Michigan, Texas, Idaho, and Utah.
Mr. Biden said that individuals in attendance “reflect why we are better positioned than any other country in the world to win the economic struggle in the twenty-first century.”
“You have the ability to channel all of our resources. Most importantly, we can leverage the entire range of our people’s skills, as well as their increased sense of optimism and potential for our country and the globe “He said. “To generate excellent employment, empower workers, and expand the economy for everyone, not just the affluent.”
US-POLITICS-BIDEN
On August 9, 2022, President Biden signs the Chips and Science Act of 2022 on the South Lawn of the White House.
GETTY IMAGES MANDEL NGAN/AFP
The president emphasized that the United States contributes for fewer than 10% of worldwide semiconductor output, a significant decrease over the previous 30 years as manufacturing has shifted offshore.
“American manufacturing is the backbone of our economy, and it has been hollowed out,” Mr. Biden stated with a severe cough, only two days after being released from isolation due to COVID-19. “We allowed semiconductor production to go elsewhere, and as a consequence, we only manufacture 10% of semiconductors today, while being a pioneer in chip design and development.”
The White House advocated roughly $50 billion in extra investments in domestic semiconductor manufacture as a result of Congress’ passage of the law ahead of the bill signing.
“The CHIPs and Science Act makes prudent investments that will enable Americans to compete and win in the future,” the White House said in an information sheet promoting the measure.
The plan includes around $52 billion in subsidies for US semiconductors and over $24 billion in tax breaks for new chip manufacturing sites. It also contains billions of dollars to increase R&D expenditures and to construct regional innovation and technology centres to generate employment and drive regional economic growth.
The White House has hailed the measure as a success for the American economy, claiming that it would lower the cost of automobiles, cellphones, consumer electronics, and appliances, all of which need processors.