Biden signs law authorising US$53 billion in subsidies for semiconductor makers in US
- The Chips and Science Act used competitive concerns about Chinese technology as rationale for financing US-based semiconductor manufacturing
- ‘China is trying to move way ahead of us’ in producing chips needed for weapons systems, Biden says
US President Joe Biden on Tuesday signed into law bipartisan legislation to provide billions of dollars in government funding for the US semiconductor industry, capping an effort to boost America’s technological competitiveness driven by concern over China’s advances.
The Chips and Science Act earmarks nearly US$53 billion in semiconductor manufacturing incentives and another US$200 billion for research into artificial intelligence, quantum computing and other advanced technologies – all areas the Chinese government has designated as national priorities.
The law also restricts any recipient of the funds from expanding semiconductor production in China “or any other foreign country of concern”.
Some US companies, including memory chip maker Micron Technology, have already announced expansion plans that will be supported by the subsidies that they expect the new law to provide.
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Biden signs US$280 billion act to boost high-tech manufacturing and research
“America invented the semiconductor … and this law brings it back home,” Biden said after signing the bill. “It’s in our economic interest and it’s in our national security interest to do so.