On Tuesday, the US President Joe Biden had signed a landmark bill to offer $52.7 billion in subsidies for US semiconductor production and research and to spice up the efforts to make the US a lot more competitive with China's science and technology effort.

HIGHLIGHTS
Joe Biden signed a bill to offer $52.7 billion for US semiconductor production
Micron would announce a $40 billion investment in memory chip manufacturing
In competition with China $200 was given to spice up US scientific research

'The future would be made in America,' mentioned by Biden, calling the measure 'a once-in-a-generation investment in America itself.'

Joe Biden had touted investments that chip would be going to make even if it remains unclear once the US Department of Commerce would write the rules for reviewing grant awards and the way long it would take to underwrite projects.

Some Republicans have joined Biden on the White House field to attend the signing of the chips bill which was years in the making in Congress.

The chief executives of Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices have attended the signing as did the governors of Pennsylvania and Illinois, the mayors of Detroit, Cleveland and Salt Lake City, and lawmakers.

The White House has mentioned that the bill's passage was spurring new chip investments. It had noted that Qualcomm on Monday had agreed to make to a make a purchase of an extra $4.2 billion in semiconductor chips from GlobalFoundries' New York factory, by bringing it to commitment to $7.4 billion in purchases through 2028.

The White House has touted that Micron has been announcing a $40 billion investment in memory chip manufacturing, which might boost US market share from 2 percent to 10 percent, it was an investment which mentioned it was planned with 'anticipated grants' from the chips bill.

Progressives had argued that the bill might be a giveaway to profitable chips companies that had closed US plants previously, but Biden had argued on Tuesday that 'this law was not going to hand out blank checks to companies.'

Well, a rare major foray into US industrial policy, the bill would also include a 25 percent investment tax credit for chip plants, which was estimated to be of worth $24 billion.

In order to compete with China, the legislation authorizes $200 over ten years to spice up US scientific research. Congress would still have to pass separate appropriations legislation in order to fund those investments.

China had lobbied against the semiconductor bill. The Chinese Embassy in Washington has mentioned China to 'firmly opposed' it, referring it to reminiscent of a 'Cold War mentality.'

Biden had noted that the US would be requiring the chips for key weapons systems like Javelin missiles. He mentioned that 'It's no wonder that the Chinese Communist Party had actively lobbied US business against this bill.'

Many US lawmakers have mentioned that they would usually not support hefty subsidies for private businesses but it had noted that China and the European Union had been awarding billions in incentives to their chip companies. They had even cited about the national security risks and big international support chain issues that have hampered international manufacturing.

Also Read: To Compete with China US Senate has passed the CHIPS Act to Boost the Domestic Chip Manufacturing