Bipartisan $280 billion Chips and Science Act ‘critical to national security’

The US government is making a gigantic investment in the smallest thing: chips. President Biden signed the Chips and Science Act into law on Tuesday to boost the U.S.’s competitiveness over China in the semiconductor industry. “For the next decades, we will again lead the world!” exclaimed President Joe Biden. The bipartisan $280 billion Chip and Science Act includes about $52 billion in subsidies for U.S. chip companies, $24 billion in tax credits for new manufacturing facilities and tens of billions of dollars in research and development. “It’s in our economic interests and our national security interests,” the president said. Lawmakers and administration officials have also called the industry critical to national security in reducing foreign dependence. “We’re going to build an entire semiconductor ecosystem right here in the United States of America,” said Commerce Secretary Gina Raimondo. Manufacturers do not waste time. On Tuesday, Micron announced a $40 billion plan to increase domestic production of memory chips. Recent partners Qualcomm and GlobalFoundries are expanding a plant in upstate New York. But these investments are unlikely to immediately solve the global deficit caused by the pandemic. As GlobalFoundries CEO Tom Caulfield told CBS News, “The complexity of the technology takes years to build capacity, and I think for the next five to 10 years we’ll be chasing the supply in this industry.” Chips power almost everything we use today, from cars and consumer electronics to medical equipment and military weapons, even our kitchen appliances. This modern lifestyle puts more pressure on these tiny chips. A recent report from the US Department of Commerce indicated that demand for chips was 17% higher in 2021 than in 2019.

The US government is making a gigantic investment in the smallest thing: chips. President Biden signed the Chips and Science Act into law on Tuesday to boost the U.S.’s competitiveness over China in the semiconductor industry.

“For the next decades, we will again lead the world!” – exclaimed President Joe Biden.

The bipartisan $280 billion Chip and Science Act includes about $52 billion in subsidies for U.S. chip companies, $24 billion in tax credits for new manufacturing facilities and tens of billions of dollars in research and development.

“It’s in our economic interests and our national security interests,” the president said. Lawmakers and administration officials have also called the industry critical to national security in reducing foreign dependence.

“We’re going to build an entire semiconductor ecosystem right here in the United States of America,” said Commerce Secretary Gina Raimondo.

Manufacturers do not waste time. On Tuesday, Micron announced a $40 billion plan to increase domestic production of memory chips. And new partners Qualcomm and GlobalFoundries are expanding the plant in upstate New York.

But these investments are unlikely to immediately solve the global deficit caused by the pandemic. As GlobalFoundries CEO Tom Caulfield told CBS News, “The complexity of the technology takes years to build capacity, and I think for the next five to 10 years we’ll be chasing the supply in this industry.”

Chips power almost everything we use today, from cars and consumer electronics to medical equipment and military weapons, even our kitchen appliances. This modern lifestyle puts more pressure on these tiny chips. A recent report from the US Department of Commerce indicated that demand for chips was 17% higher in 2021 than in 2019.

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