President Biden on Monday signed into law the CHIPS and Science Act, a massive $280 billion piece of legislation that is meant to help the US counter China.
The bill includes nearly $53 billion in funds to subsidize the domestic production of semiconductors, $24 billion for tax incentives, and over $200 billion in research funding that will go to federal agencies.
At a signing ceremony, Biden said the bill would help the US compete with China in the chip industry. “China is trying to move way ahead of us to manufacture these sophisticated chips as well,” he said. “The United States must lead the world the production of these advanced chips. This law will do exactly that.”
Opponents of the bill have likened it to corporate welfare. Congress and the Biden administration worked closely with corporations when the legislation was making its way through the House and Senate. Some US chip makers have already announced that they will be building facilities with funds from the bill.
US arms makers were also eager to see the legislation become law as semiconductors are crucial for building advanced weapons. Biden and Deputy Defense Secretary Kathleen Hicks met with the CEO of Lockheed Martin to discuss the bill before it was passed through Congress.
Last week, House Speaker Nancy Pelosi (D-CA) met with chip industry leaders in Taiwan, including the chairman of Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest semiconductor manufacturer. Pelosi discussed the Chips and Science Act with the TSMC char, signaling the US might be trying to entice Taiwanese companies to open more facilities in the US with the new funds.
Part of the US strategy against China’s chip industry includes sanctions, but that has appeared to backfire. Bloomberg recently reported that US sanctions have supercharged China’s semiconductor industry and that it is now home to the fastest-growing chip makers in the world.
Pelosi’s husband just made a fortune through insider trading!
Pelosi is just as ignorant of the international situation as Trump was and the other bozos in Washington.She is as crooked and deceitful as they come only to.be ranked with Schumer and AIPAC as enemy’s of the people.
Yes but Biden just signed into law subsidies for the chip industry in America. Taiwan Semi is building a new factory in America to manufacture chips in the US. Also Pelosi’s husband has been a big investor in chip stocks lately.
I imagine it’s just a matter of time before China decides to give us a taste of our own medicine by prohibiting the sale of any electronics that contain US components.
Yeah, the sanctions would sting.
It’s an interesting use of the word “compete” that requires government money to do it. The only thing they’re competing for is government handouts. What you wind up with is competing bureaucracies. Everybody loses.
“US sanctions have supercharged China’s semiconductor industry and that it is now home to the fastest-growing chip makers in the world”
I mean this line says it all doesn’t it? They used to buy our chips to make phones and computers for us. We have made it so they will now have to make their own chips because they can’t buy from us. And when China is making the faster chips, guess who will be on the export ban list on other side?
Classic example, we banned China from using the International Space Station, and they literally built their own and soon will be the only space station in orbit when the ISS collapse after Russia pulls out.
Also, what happened to “unfair trade practices?” Taking 280 billion of taxpayer money to subsidize a specific industry appear very much like an unfair trade practice to me… All this is gonna make a bunch of profit for Intel and not make chips any cheaper for the rest of us.
“Countering China”, makes me a bit nervous. How far might this go?… We’ll have to wait and see. It feels like a slow boil possibly building into something bigger…