On Tuesday, Aug. 9, US President Joe Biden signed a bipartisan bill that aims to strengthen the country's competitiveness with China by investing billions of dollars in domestic semiconductor manufacturing and scientific research.
Biden Signs CHIPS
According to CNBC, Biden was joined by a crowd of hundreds of people, including tech executives, union presidents, and political leaders from both Republican and Democratic parties, during the signing ceremony held outside the White House.
The bill, called the Chips and Science Act, or CHIPS, includes more than $52 billion for US companies producing computer chips, as well as billions more in tax credits to encourage investment in semiconductor manufacturing.
It also provides tens of billions of dollars to fund scientific research and development and to spur the innovation and development of other tech companies in the United States.
The Biden administration also contended that the legislation will distribute billions more in private spending in the tech industry.
The White House said on Tuesday, Aug. 9, that several companies, spurred by the chips bill, have announced more than $44 billion in new semiconductor manufacturing investments.
Out of that sum, $40 billion is coming from Micron's investment in memory chip manufacturing. The White House said that the tech company's initiative will yield 8,000 new jobs and boost the US market share of memory chip production to 10% from 2%.
A partnership between Qualcomm and GlobalFoundries includes $4.2 billion in chip production as part of an expansion of GlobalFoundries' New York facility, according to CNET.
America's Chip Industry
Advocates say that the new funding is important to help sharpen America's technological edge and reinvigorate its lagging chip industry.
The US produces only about 10% of the world's supply of chips, whereas East Asia accounts for 75% of global production, including most of the top-tier chips, according to CBS News.
Semiconductors are essential pieces of a list of products, including consumer electronics, automobiles, healthcare equipment, and weapon systems.
The COVID-19 pandemic sparked a chip shortage and strained supply chains, highlighting America's dependence on chips made from other countries and showing a potential national security threat.
The signing comes as President Biden and congressional Democrats cap a flurry of activity before lawmakers leave Washington for their break and turn their attention to the upcoming campaigns.
Senate Democrats also passed a bill to fund climate, energy and health policies by raising taxes on wealthy corporations and reforming prescription drug pricing.
The bill, which is a significant piece of Biden's agenda that Democrats had worked on for a year, is evenly split by party and Vice President Kamala Harris cast the tiebreaking vote.
In June, President Biden also signed a bipartisan bill to help strengthen gun regulations, including by enhancing requirements for background checks.
The legislation went through Congress in the wake of a deadly mass shooting at an elementary school in Uvalde, Texas, in which a gunman killed a total of 19 students and two teachers.
Just last week, Biden revealed that a US strike in Afghanistan killed Ayman Al-Zawahiri, a top al-Qaeda leader and was considered as the mastermind behind the 9/11 terrorist attacks.
This article is owned by Tech Times
Written by Sophie Webster
