Bill To Help Chipmakers Compete With China To Be Signed By Biden On August 9 – White House

Joe Biden will sign a bill next Tuesday to support the semiconductor industry to make the United States more competitive with China

Washington: The White House said Wednesday that President Joe Biden will sign a bill into law next Tuesday to support the US semiconductor industry and boost efforts to make the United States more competitive with China.

The legislation aims to alleviate persistent shortages that have affected everything from cars, guns, washing machines, and video games. Thousands of cars and trucks are still parked in southeastern Michigan waiting for chips as shortages continue to plague automakers.

The bill is a rare major foray into US industrial policy, providing about $52 billion in government subsidies for US semiconductor research and production, and also includes a tax credit for investment in chip factories estimated to be worth about $24 billion.

“The bill will advance our efforts to manufacture semiconductors here in the United States,” Biden said on Tuesday.

The legislation authorizes $200 billion over 10 years to boost US scientific research to better compete with China. Congress will still need to pass separate appropriations laws to fund those investments.

China lobbied against the semiconductor bill. The Chinese embassy in Washington said China “strongly opposes” it, calling it a “Cold War mentality”.

Help Chipmaker Compete With China Signed By Biden

Several US lawmakers said they would not normally support large subsidies for private companies, but noted that China and the European Union have offered billions of dollars in incentives to their chip companies. They also cited national security risks and huge problems in the global supply chain that have hampered global industrialization.

Some progressive lawmakers have raised concerns about the amount of government support for profitable chip companies.

The Commerce Department said on Friday it would limit the number of government subsidies to semiconductor manufacturing and not allow companies to use the money to “fill their bottom line.”

Congressional Progressive Caucus chair Pramila Jayapal said the group backed the legislation after lengthy negotiations with Commerce Secretary Gina Raimondo after the group raised concerns that chip companies would use the money to buy back shares or to pay dividends.

Washington: The White House said Wednesday that President Joe Biden will sign a bill into law next Tuesday to support the US semiconductor industry and boost efforts to make the United States more competitive with China.

The legislation aims to alleviate persistent shortages that have affected everything from cars, guns, washing machines, and video games. Thousands of cars and trucks are still parked in southeastern Michigan waiting for chips as shortages continue to plague automakers.

The bill is a rare major foray into US industrial policy, providing about $52 billion in government subsidies for US semiconductor research and production, and also includes a tax credit for investment in chip factories estimated to be worth about $24 billion.

“The bill will advance our efforts to manufacture semiconductors here in the United States,” Biden said on Tuesday.

The legislation authorizes $200 billion over 10 years to boost US scientific research to better compete with China. Congress will still need to pass separate appropriations laws to fund those investments.

China lobbied against the semiconductor bill. The Chinese embassy in Washington said China “strongly opposes” it, calling it a “Cold War mentality”.

Help Chipmaker Compete With China Signed By Biden

Several US lawmakers said they would not normally support large subsidies for private companies, but noted that China and the European Union have offered billions of dollars in incentives to their chip companies. They also cited national security risks and huge problems in the global supply chain that have hampered global industrialization.

Some progressive lawmakers have raised concerns about the amount of government support for profitable chip companies.

The Commerce Department said on Friday it would limit the number of government subsidies to semiconductor manufacturing and not allow companies to use the money to “fill their bottom line.”

Congressional Progressive Caucus chair Pramila Jayapal said the group backed the legislation after lengthy negotiations with Commerce Secretary Gina Raimondo after the group raised concerns that chip companies would use the money to buy back shares or to pay dividends.

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