Biden Signs legislation to compete with China on chip production. President Joe Biden aims to solve the chip crisis in the U.S. by providing $280 Billion in support to American semiconductors.
The U.S. is to take action against the long-standing chip manufacturer crisis. Biden administration trying to increase technological competition against China and will provide 280 Billion dollars of sectoral support. On the other hand, the United States bans American tech companies that produce chips in China.
The United States has been struggling to compete with China on the chip crisis. Finally, President Joe Biden took an action. Last week, the Senate passed a law which is called the Chips and Science Act.
The White House has announced that government will encourage investments in the American chip industry. With the new law, American chip companies that manufacture only in the United States will be supported. $52 Billion has been allocated to those countries to make them product chips.
Micron will get $40 billion and Qualcomm and GlobalFoundries will get $4.2 billion to increase domestic memory and chip production. According to the new law, companies that want to get this subsidy must stop producing in the countries like China which pose a national security threat. But companies that want to receive subsidies under the new law must stop production in countries that pose a national security threat.
President Biden said that “Today is a day for builders. Today America is delivering”. Also, he noted “The U.S. has gone from producing 40% of semiconductors to less than 10%. Due to rampant manufacturing outsources.
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