Washington — President Biden on Tuesday is signing into law legislation that will provide billions of dollars in subsidies for domestic production of semiconductor chips and aims to make the United States more competitive with China.
Called the Chips and Science Act, the bill passed both chambers of Congress last month with bipartisan support following months of negotiations. The legislation was a top priority for the Biden administration, with top officials warning lawmakers ahead of its passage that failure to act would have implications for national security and the economy.
In addition to remarks delivered by Mr. Biden, representatives from the private sector, as well as state and local elected officials are expected to attend the event marking enactment of the measure. Among those set to attend are the heads of Intel, HP and Lockheed Martin, the governors of Illinois and Pennsylvania, and mayors from Ohio, Michigan, Texas, Idaho and Utah, according to a White House official.
Ahead of the bill signing, the White House promoted what it said is nearly $50 billion in additional investments in domestic semiconductor production that was prompted by approval of the legislation by Congress.
“The CHIPs and Science Act makes the smart investments so that American to compete in and win the future,” the White House said in a fact sheet about the legislation.
The measure provides more than $52 billion in subsidies for U.S. semiconductors and roughly $24 billion in tax credits for new chip manufacturing facilities. It also includes billions of dollars for boosting investments in research and development and establishing regional innovation and technology hubs to create jobs and catalyze regional economic development.
The White House has touted the legislation as a win for the U.S. economy that will reduce the cost of cars, smartphones, consumer electronics and appliances, all of which are require chips.
