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Washington — President Joe Biden is set to sign a bill on Tuesday that will provide $52.7 billion in subsidies to U.S. semiconductor production and research, boosting efforts to make the U.S. more competitive with China's science and technology efforts.
The White House touts the investments the chip companies are making, but it remains unclear when the US Department of Commerce will create rules for reviewing grants and how long it will take to underwrite projects.
The CEOs of Micron, Intel, Lockheed Martin, HP, and Advanced Micro Devices, as well as cabinet officials, auto industry and union leaders, are EDT leaders. Attend a signature set for 10am. According to the White House, that includes Ray Curry, president of United Auto Workers.
Also attending will be the governors of Pennsylvania and Illinois, and the mayors and legislators of Detroit, Cleveland and Salt Lake City.
The White House said the passage of the bill is spurring new chip investment. Qualcomm noted on Monday that he agreed to buy $4.2 billion in additional semiconductor chips from GlobalFoundries' New York factory, pledging the total purchases to $7.4 billion by 2028. did.
The White House also said Micron is announcing his $40 memory investment in chip manufacturing, which he said will increase U.S. market share from 2%. Push up to 10%.
The legislation aims to alleviate persistent shortages affecting everything from cars, weapons, washing machines to video games. As shortages continue to affect automakers, thousands of cars and trucks remain parked in southeastern Michigan waiting for tips.
A rare and major foray into US industrial policy, the bill also includes a 25% investment tax credit for chip factories estimated to be worth $24 billion. .
This law would authorize him $200 billion over 10 years to boost US scientific research to make it more competitive with China. Congress should pass separate appropriations bills to fund these investments.
China has lobbied against the semiconductor bill.The Chinese embassy in Washington said China was "firmly opposed" to it and associated it with the "Cold War spirit."
Many U.S. lawmakers have said they typically do not support large subsidies to private companies, but China and the European Union are giving billions of dollars in incentives to their own chip companies. They also cited national security risks and problems with the huge global supply chains that have hampered global manufacturing. (Reporting by David Shepardson, Editing by Bradley Perrett)
