Biden signs CHIPS bill to bolster semiconductor production
US President Biden has now signed into law the bipartisan CHIPS and Science Act of 2022 – which aims to stimulate investments that will strengthen US manufacturing, supply chains, and national security.
"You know, the CHIPS and Science Act supercharges our efforts to make semiconductors here in America," said the President at the signing. "Those tiny computer chips smaller than a fingertip that are the building blocks for our modern economy, powering everything from smartphones, to dishwashers, to automobiles."
The CHIPS and Science Act aims to boost American semiconductor research, development, and production. The US invented the semiconductor, and over 30 years ago, the country had 40% of the global production of these chips. Today the country only produces about 10% of the world’s supply.
The CHIPS and Science Act will provide USD 52.7 billion for US semiconductor research, development, manufacturing, and workforce development – with the goal of increasing the level of semiconductor manufacturing in the country and ultimately reduce the dependency on Asian production.
This includes USD 39 billion in manufacturing incentives, including USD 2 billion for the legacy chips used in automobiles and defense systems, USD 13.2 billion in R&D and workforce development, and USD 500 million to provide for international information communications technology security and semiconductor supply chain activities. It also provides a 25 percent investment tax credit for capital expenses for the manufacturing of semiconductors and related equipment.
"America invented the semiconductor, and this law brings it back home. It’s in our economic interest and it’s in our national security interest to do so," the president said.