The U.S. President, Joe Biden, signed the CHIPS and Science Act of 2022 today in hopes of boosting the chip-making industry in the U.S. The bill will inject $52.7 billion into semiconductor manufacturing as subsidies.
The $52.7 billion investment allots $39 billion in manufacturing incentives, $2 billion for legacy chips utilized in defense systems and the automobile industry, $13.2 billion for Research and Development activities, followed by $500 million for semiconductor supply and international ICT security. Additionally, it provides a 25% investment tax credit on expenses related to semiconductor manufacturing equipment.
According to Reuters, the bill was signed at the White House ceremony in the presence of Vice President Kamala Harris and the House of Representatives Speaker Nancy Pelosi, alongside other Republicans. Chief executives from major companies like Intel, Lockheed Martin, Advanced Micro Devices, and HP were also present.
The White House claims that the bill will boost the chip manufacturing industry as businesses like Qualcomm agreed to further invest $4.2 billion in chips from GlobalFoundries as an addition to its previous investment of $3.2 billion. The agreement would aid the expansion of the GlobalFoundaries' factory in New York. Furthermore, the bill hoisted up U.S. market share by 8% as Micron announced its $40 billion investment in producing memory chips.
Biden suggests that the law would help the U.S. compete with China and declares, “The future is going to be made in America,” as the bill is “a once-in-a-generation investment in America itself.”