Biden signs the chip bill to strengthen the semiconductor industry and improve its competitiveness against China | Anue Juheng

U.S. President Joe Biden signed the landmark chip bill on Tuesday (9th), which includes $52.7 billion in subsidies for U.S. semiconductor production and research, boosting U.S. competitiveness against China in science and technology and strengthening national security.

The full name of the chip bill is “CHIPS and Science Act of 2022, CHIPS Act”. It has passed the Senate and House of Representatives in July, and the overall scale will reach 280 billion US dollars. Members of both parties believe that this bill It is necessary to win economic competition with China and strengthen national security.

Biden said at the signing ceremony that the bill is a once-in-a-generation opportunity to invest in the United States and will help the United States win economic competition in the 21st century, while also encouraging chip companies to invest. However, it is unclear when the Commerce Department will develop regulations for review incentives or how long it will take to approve the plan.

Including Micron (MU-US), Intel (INTC-US), Lockheed Martin (LMT-US), HP (HPQ-US) and Supermicro (AMD-US) at the signing ceremony at 10 a.m. U.S. time, along with cabinet officials, auto industry and union leaders.

The White House said the passing of the chip bill led to new chip investment, Qualcomm (QCOM-US) agreed yesterday to GlobalFoundries (GFS-US) The New York factory will purchase another $4.2 billion in chips, with a total commitment of $7.4 billion by 2028. In addition, Micron announced an investment of $40 billion in memory chip manufacturing, which will increase the U.S. market share from 2% to 10%.

The purpose of this legislation is to alleviate the wafer shortage. The ongoing shortage of chips has hit everything from cars, weapons, washing machines to video games, with thousands of cars and trucks still parked in southeastern Michigan waiting for chips.

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