Biden Signs CHIP Act Increasing Domestic Production Of Semiconductors

The U.S. passes the CHIP act increasing the production of semiconductors for engineering.

On Tuesday, August 9th, 2022, President Joe Biden signed the bill for the CHIP and Science Act. CHIP stands for creating helpful incentives to produce semiconductors for America. The bill was passed to Biden for approval after a 64-33 vote in the Senate.

With this bill, a collective $280 billion will help grow the domestic production and manufacturing of semiconductors. $53 billion will be going toward research and development.

Semiconductors are an essential part of the electronic circuit that allows things like computers, AI, and other engineering feats to run.

In the 1990s, the U.S. had about 40% of the global production of semiconductors; however, now, the number has dropped to 11%. This drop could be connected to Covid-19 and the jobs lost, and companies shut down due to the outbreak.

This new product would keep the U.S. from turning to China to source the materials and will now make them competitive.

Tuesday, Biden said that this bill is an “investment in America itself,” hoping that the funding for research and production, along with investments, will not only aid the future of American technology but with the economy.

There has already been a $40 million investment from Micron in memory chip manufacturing and a $4.2 billion acquisition by Qualcomm and GlobalFoundries.

Biden hopes to restore the United States’ leadership in semiconductors production and increase its technological advancements.

“Image from Joe Biden’s social media”