President Joe Biden on Tuesday will sign a bill to provide $52.7 billion in subsidies for US semiconductor production and research and to boost efforts to make the United States more competitive with China's science and technology efforts.
The White House is touting investments that chip companies are making even though it remains unclear when the US Commerce Department will write rules for reviewing grant awards and how long it will take to underwrite projects.
For the latest headlines, follow our Google News channel online or via the app.
The chief executives of Micron, Intel, Lockheed Martin, HP, and Advanced Micro Devices will attend the signing, set for 10 a.m. EDT, as will cabinet officials and auto industry and union leaders, including United Auto Workers President Ray Curry, the White House said.
Also attending will be governors of Pennsylvania and Illinois, the mayors of Detroit, Cleveland, and Salt Lake City, and lawmakers.
The White House said the bill’s passage was spurring new chip investments. It noted that Qualcomm Monday had agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries’s New York factory, bringing its total commitment to $7.4 billion in purchases through 2028.
The White House also said Micron was announcing a $40 billion investment in memory chip manufacturing, which would boost US market share from 2 percent to 10 percent.
The legislation aims to alleviate a persistent shortage that has affected everything from cars, weapons, washing machines and video games. Thousands of cars and trucks remain parked in southeast Michigan awaiting chips as the shortage continues to impact automakers.
A rare major foray into US industrial policy, the bill also includes a 25 percent investment tax credit for chip plants, estimated to be worth $24 billion.
The legislation authorizes $200 billion over 10 years to boost US scientific research to better compete with China. Congress would still need to pass separate appropriations legislation to fund those investments.
China had lobbied against the semiconductor bill. The Chinese Embassy in Washington said China “firmly opposed” it, calling it reminiscent of a “Cold War mentality.”
Many US lawmakers had said they normally would not support hefty subsidies for private businesses but noted that China and the European Union had been awarding billions in incentives to their chip companies. They also cited national security risks and huge global supply chain problems that have hampered global manufacturing.
South Korea group announces $22 billion investment in US on semiconductors, techSouth Korea’s huge SK Group said Tuesday it will invest $22 billion in semiconductors and other high-tech areas in the United States, giving President ... Technology
US restricts exports to Chinese semiconductor firm Fujian JinhuaOpening a new front in its trade and technology disputes with China, the Trump administration on Monday took action to cut off a Chinese state-backed ... Technology
Tensions with US spur Chinese buying of chipmaking stocksChinese chipmakers’ shares jumped by the most in two years this week as House of Representatives Speaker Nancy Pelosi’s visit to Taiwan heightened ... Technology
US sanctions helping China supercharge its chipmaking industryChina’s chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei Technologies Co. to ... Technology
Taiwan raids Chinese firms in latest crackdown on chip engineer-poachingTaiwan authorities raided ten Chinese companies suspected of illegally poaching chip engineers and other tech talent this week, the island’s ... World News
Intel picks EU chip factory sites in race to boost suppliesIntel on Tuesday picked Germany as the site for a huge chipmaking complex, the first details of its planned $88 billion investment in Europe, as the ... Technology
Taiwan chip industry emerges as battlefront in US-ChinaOn the front line of the superpower struggle between the United States and China, Taiwan has fashioned a defensive masterstroke. It has become ... World News
Intel reveals research to speed up computing power into chips beyond 2025Research teams at Intel Corp on Saturday unveiled work that the company believes will help it keep speeding up and shrinking computing chips over the ... Technology