Biden signs major semiconductors investment bill with eyes on China

By Al Mayadeen English
Source: Agencies
9 Aug 2022 20:16

Chinese supremacy in domestic semiconductors and other high-tech manufacturing sectors continues to irk the US.

Biden signs major semiconductors investment bill against China.

President Joe Biden signed a multibillion-dollar bill into law Tuesday to boost domestic semiconductor and other high-tech manufacturing sectors that US leaders fear will be dominated by China.

The Chips and Science Act includes approximately $52 billion in funding to promote the production of microchips, the tiny but powerful and relatively difficult-to-manufacture components at the heart of almost every modern piece of machinery.

More than tens of billions of dollars are set aside for scientific research and development.

According to the White House, the government's commitment to bolstering high-tech industries is already attracting large-scale private investors, with $50 billion in new semiconductor investment alone. The lion's share of that is a $40 billion investment by US firm Micron in domestic expansion by 2030.

Biden said at a White House speech that the cash injection from the Chips Act will help "win the economic competition in the 21st century."

Entrepreneurs are "the reason why I'm so optimistic about the future of our country," he said, and "the Chips and Science Act supercharges our efforts to make semiconductors here in America."

Re-establishing US innovation

Since taking office, one of the Democrats' main themes has been the need to re-establish US leadership in cutting-edge innovation and rebuild the domestic industrial base in the face of China's massive state-backed investments.

Semiconductors are of particular concern because they are used in everything from washing machines to sophisticated weapons, and nearly all of them are manufactured in other countries.

Despite the fact that the semiconductor was invented in the United States, the country only produces about 10% of the global supply, according to the White House, with the remaining 75% coming from east Asia.

Biden is also banking on the Chips Act to generate voter enthusiasm as his Democratic Party attempts to defend a razor-thin congressional majority against a Republican takeover in this November's midterm elections.

He told Americans that factory expansion will create around a million construction jobs over the next six years and that these will be "union jobs" paying "the prevailing wage."

Bill for military veterans

Biden will sign another bill increasing funding for military veterans who have been exposed to toxins on Wednesday. This, like the Chips bill, received bipartisan support in a typically polarized Congress.

The President is expected to sign a massive domestic investment bill backed solely by Democrats, aimed at combating climate change and lowering healthcare costs.