Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: Two were martyred in an initial toll of the Israeli drone strike that targeted the al-Asira neighborhood in the city of Baalbek, eastern Lebanon
Al Mayadeen's correspondent: An Israeli drone strike targeted the al-Asira neighborhood east of Baalbek, eastern Lebanon
Sheikh Naim Qassem to the pager attack survivors: You are the greatest resistance. Know that 'Israel' will fall because it embodies aggression, crime, and occupation; victory is truly yours
Sheikh Qassem to the pager attack survivors: The value of what you are doing despite your wounds is immense, and here you are, treading the path of the Master of Nation's Martyrs and the leaders
Sheikh Qassem to the pager attack survivors: You are moving forward with insight deeper than sight itself. The enemy sought to eliminate your role in the battle, yet you remain steadfast and continue the fight
Hezbollah Secretary-General Sheikh Naim Qassem to the pager attack survivors one year later: You are healing from your wounds and rising above them. You have successfully passed the test
Palestinian media: Reports of stabbing operation in occupied al-Quds.
Israeli media: Sirens blare in Arava in South, near Ramon Airport.
Egyptian PM Mostafa Madbouli: Egypt is targeted in plans to redraw regional map
AEOI Chief Mohammad Eslami: Our presence in IAEA General Council and fact-checking helped in preventing unilateral rhetoric that aims to portray Iran as an unregulated country

Biden signs on $52.7 bln microchip investment bill to 'counter China'

  • By Al Mayadeen English
  • Source: Agencies
  • 10 Aug 2022 07:54
  • 1 Shares
4 Min Read

Chip shortage in the US has cost its economy and has resulted in shortages... and falling behind in its 'power' competition with China.

  • x
  • U.S. President Joe Biden signs the CHIPS and Science Act of 2022 alongside Vice President Kamala Harris and House of Representatives Speaker Nancy Pelosi. on the South Lawn of the White House in Washington, U.S., August 9, 2022. (Reuters)
    US President Joe Biden signs the CHIPS and Science Act of 2022 alongside Vice President Kamala Harris and House of Representatives Speaker Nancy Pelosi in the White House, Washington, August 9, 2022. (Reuters)

US President Joe Biden on Tuesday signed a landmark bill - the CHIPS and Science Act of 2022 - which will allocate $52.7 billion to subsidize semiconductor production and research in a bid to boost incentives to make the US more competitive with China's science and technology efforts. 

"The future is going to be made in America," Biden said, calling the measure "a once-in-a-generation investment in America itself."

Republicans, as well as Democrats, joined Biden on the White House lawn as the US President signed the chips bill that was distilled years in Congress before getting approval. 

Attending the signing were the chief executives of Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices. Furthermore, the governors of Pennsylvania and Illinois, in addition to the mayors of Detroit, Cleveland and Salt Lake City, and lawmakers were at the event. 

Read more: Intel invests in EU, fuels chips race with Asia

The White House's bill passage was creating new chip investments: On Monday, Qualcomm agreed to buy $4.2 billion in semiconductor chips from GlobalFoundries' factory in New York, which totals $7.4 billion in purchases through 2028.

Micron, according to the White House, announced a $40 billion investment in manufacturing memory chips, potentially boosting market share from 2% to 10%. This investment was planned with "anticipated grants" from the chip bill, according to Biden. 

The shortage has been affecting everything from cars, weapons, and washing machines to video games: Thousands of cars and trucks remain parked in southeast Michigan awaiting chips.

Related News

Chinese Defense Minister reaffirms stance on Taiwan at Xiangshan forum

Syria's al-Sharaa: Security deal with 'Israel' is a necessity

The bill, furthermore, includes a 25% investment tax credit for chip plants, worth around $24 billion. 

This legislation will allow $200 billion over a decade to boost technology research that will compete with Beijing - however, Congress will need to pass separate appropriations legislation to fund those investments.

Read next: Largest Chinese chipmaker to up capacity following record revenue

The Chinese Embassy in Washington said Beijing "firmly opposed" the bill as it strikes as a "Cold War mentality." 

The US needs chips for key weapons, like the Javelin missiles: "It's no wonder the Chinese Communist Party actively lobbied US business against this bill," Biden said.

Microchip shortage causes $240 billion loss for US economy in 2021

According to analysts earlier this year, a shortage of microchips in manufacturing processes in the US cost the US economy $240 billion last year, with electronics companies bearing the brunt of the impact.

According to CBS, disruptions were caused by the closure of key chip production sites in Asia owing to the epidemic.

The CEO of the Optimal Design company, Sajid Patel, told CBS that in some instances, production had to be scaled back because chips were unavailable, adding that "I think it's important for us to make this product in the United States. We're not making enough of it now. We have to make more of it. And the only way that you do that is to have more plants. And so this is the investment, frankly, in the future. It's not that far off."

The microchip scarcity has also hampered automobile production. Instead of driving immediately to the showroom, Ford vehicles were transported to parking lots from the assembly line where they waited for chips.

As a result, Ford lost $210 billion. The scarcity is predicted to worsen in the near future, but domestic chip manufacturing is expected to increase, with Intel announcing the development of a chip facility in the state of Ohio.

  • United States
  • Microchips
  • China
  • Joe Biden

Most Read

Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025
Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

  • Palestine
  • 14 Sep 2025
UKLFI’s latest faux pas, like "Israel’s" recent failed attempt at regime change in Iran, is unambiguously indicative of a flailing entity on the verge of extinction. (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

Zionist lawfare operation facing collapse?

  • Opinion
  • 13 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A Hezbollah supporter who lost his sight in a pager attack carried out by "Israel" on Sept. 17, 2024, covers his eyes with a red headband inscribed with the name "Hussein" during Ashoura, July 6, 2025 (AP)
Politics

'We Have Recovered': Lebanon marks 1st anniversary of Pager Attack

The Arab neighborhood of El Za'im, on the outskirts of east Occupied Al-Quds in the West Bank, near where Israeli government says housing units will be built as part of the E1 settlement project, Thursday, August 21, 2025. (AP Photo/Ohad Zwigenberg)
Palestine

'Israel’s' deliberate policies drive West Bank economy toward collapse

Ben & Jerry's ice cream shop, Wednesday, Feb. 26, 2025, in Cambridge, Mass. (AP Photo/Charles Krupa)
Politics

Ben & Jerry’s co-founder resigns over parent company curbing activism

Trump’s approval rating falls to new low in second term: Poll
US & Canada

Trump’s approval rating falls to new low in second term: Poll

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS