--- title: "In Competition with China, Joe Biden Signs Chip Bill to Boost Semiconductor Manufacturing" description: "US President Joe Biden had signed a landmark bill to offer $52.7 billion for US semiconductor production to boost up the efforts in competition with C" author: "Siddhi Shaw" published: 2022-08-10 canonical: https://www.mindstick.com/news/1858/in-competition-with-china-joe-biden-signs-chip-bill-to-boost-semiconductor-manufacturing category: "technology" tags: ["technology", "usa", "manufacturing"] reading_time: 3 minutes --- # In Competition with China, Joe Biden Signs Chip Bill to Boost Semiconductor Manufacturing 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](https://www.mindstick.com/blog/11008/science-and-technology-drives-software-industry) 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](https://www.mindstick.com/news/1621/joe-biden-disclosed-a-pact-with-internet-companies-to-reduce-prices-for-lower-income-americans) 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](https://www.mindstick.com/news/1186/ces-2022-began-microsoft-qualcomm-partner-on-metaverse-chips-for-ar-glasses)** 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](https://answers.mindstick.com/qa/37746/first-industrial-policy-of-free-india-was-announced-in-which-year), the bill would also include a **25 percent** investment tax credit for [chip](https://www.mindstick.com/news/1298/the-us-will-release-chip-shortage-study-details-amid-funding-push) 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](https://answers.mindstick.com/qa/107875/summarize-the-recent-breakthroughs-in-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](https://yourviews.mindstick.com/view/80932/who-chief-dr-tedros-and-chinese-communist-regime-connection-in-corona-pandemic) 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](https://answers.mindstick.com/qa/106107/how-does-the-national-security-council-function) risks and big [international support](https://yourviews.mindstick.com/view/83928/pakistan-begging-for-international-support-over-the-ban-on-pfi-in-india) 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](https://www.mindstick.com/news/1805/to-compete-with-china-us-senate-has-passed-the-chips-act-to-boost-the-domestic-chip-manufacturing) --- Original Source: https://www.mindstick.com/news/1858/in-competition-with-china-joe-biden-signs-chip-bill-to-boost-semiconductor-manufacturing Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.