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President Biden Signs New Bill That Invests Billions In Computer Chip Production By The US

We’ve previously spoken about how the US is doing everything in its power to try and increase its competitive spirit against China. And this is especially in regard to the semiconductor industry.

Today, American President Joe Biden was seen signing a new bill called the Chips & Science Act which has allowed the country to invest billions of dollars to manufacture computer chips locally.

The bipartisan bill will also be seeing funds allocated to scientific research in this regard, not to mention a great focus on domestic manufacturing as well. This is being seen as a move to help lessen the great reliance and competition of China that has America worried constantly.

For years, Chinese firms have served as a looming threat to the US semiconductor industry but it now appears like things are ready to change for the country’s better with this new bill coming into play.

Biden was seen making a few remarks while signing the bill right outside the White House, including how today was a great moment of pride for American builders as the country will start delivering.

The American President was certainly not alone as hundreds joined him during this historical signing including the likes of top executives from the tech industry, union heads, and several top political leaders arising from both the Republican and Democratic sides.

The investment amount was delineated to be $52 billion for local American firms that manufacture computer chips. But that was not all as billions of funds in the form of tax credits were also seen as a move to encourage more investments in the same industry.

Then we were informed about the billions allocated for the purpose of researching funding to help kickstart the entire innovation process for other tech-related firms in the country.

Biden’s administration has vowed that this bill would also be seeing unlocking billions more for the purpose of private spending as was seen shortly after the bill’s signing. So many American companies have literally spurred into announcing more funds for the purpose of semiconductor manufacturing.

One of the biggest investments to come forward was a $40 billion deal by Micron which would be involved in the production of memory chips. But that will also bring in more benefits for the country’s economy including more jobs and a huge boost to market shares for chips.

Advocates in favor of the new bill claim the decision was the right step forward and was necessary to enhance the country’s technological edge for an industry that seemed to be lagging in more places than one.

In case you didn’t know, America is responsible for making up just 10% of the global supply of semiconductors. On the other hand, nations located in East Asia only account for 75% of the production. As you can see, the difference is vast.

Semiconductors are microelements needed to produce some of the world’s most useful products like automobiles, weapons, equipment for healthcare, and electronic products as well.

The real issue struck during the pandemic when an imminent shortage struck center stage, straining supply chains along the way. And that showed the US how much it depended on others for its raw materials, putting a whole new national security threat in the spotlight.

The news linked to the signing comes at a crucial time as the lawmakers pack up their final meetings and make their way out of the capital city to focus on mid-term elections.

President Biden is also believed to sign on another major deal that’s related to boosting health benefits for veterans that had been exposed to harmful burn pits and their related chemicals.


Photo: The White House / Twitter

Read next: Here’s How China Went From Emerging Economy to Superpower in Just 20 Years

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