The US President, Joe Biden, has signed this Tuesday a new legislation that provides for increased investment in semiconductors and scientific research in order to increase the competitiveness of the United States compared to other major international powers.
The bill, formally known as the ‘CHIPS and Science Act,’ was passed by Congress — the Senate and House of Representatives — in late July, after more than a year of work by the Administration and multiple iterations of the legislation.
This new legislation will provide for more than $50 billion (about €49 billion) for semiconductor manufacturers to build manufacturing plants domestically. It also includes $80 billion (more than 78.3 billion euros) to boost innovation and research.
“We are better positioned than any other nation in the world to win the economic competition of the 21st century,” said President Biden, who called the bill “a once-in-a-generation investment in America,” according to ‘The Hill’.
The president also expressed his conviction that the measure will boost the creation of good jobs, employ workers and grow the economy to, as a whole, propel the United States towards industrial leadership in the future.
The White House has touted the legislation as a solution to the supply chain challenges highlighted by the coronavirus pandemic, during which global shortages of semiconductors led to delays in the production of automobiles and electronics.
With the bill, Washington seeks to increase domestic semiconductor production in the long term to reduce U.S. dependence on those foreign suppliers. The proponents of the proposal also believe it will help the country compete directly with China, which has its own chip market.
“The United States must lead the world in the production of these advanced chips. This bill will do exactly that,” has tenant of the White House.