Biden Signs Legislation To Boost US Chip Production, Raise Investment In Science

US President Joe Biden on Tuesday signed a legislation into law that aims to bolster US chip manufacturing in bid to counter China.

The bipartisan CHIPS and Science Act sets aside $52.7 billion to increase production of American-made semiconductors, address supply chain vulnerabilities by producing more goods in the US, bolster domestic scientific research, and strengthen the country's economic and national security.

Addressing the signing ceremony at the White House, Biden said the US and the world "face an inflection point" in economy and technology, stressing that America is about "possibilities" and called the Act as "once in a generation."

"CHIPS and Science Act will supercharge our efforts to make semiconductors here in America ... they are the building blocks for our modern economy powering everything, from smartphones to dishwashers and automobiles. America invented the semiconductor, they powered missions to the Moon," he said.

The president said the US had a share of 40% in global chip production over 30 years ago, before American manufacturing "hollowed out" and semiconductor manufacturing were let to move overseas, adding that the US' share is around 10% today.

"One-third of core inflation last year was due to higher prices of automobiles ... We need to make these chips in America, to bring down the costs and create jobs," he said.

Arguing that China, Japan, South Korean and the EU are making historic investments to attract businesses to their countries, Biden said major American companies such as Intel, Micron, GlobalFoundries and Qualcomm have committed to make chip investments in the US.

Computer memory and data storage firm Micron is set to make a $40 billion investment in memory chip manufacturing, while semiconductor makers Qualcomm and GlobalFoundries are providing a new partnership worth $4.2 billion to expand a facility, the White House announced earlier.

"This bill is about more than chips. It is about science as well. Decades ago, we used to invest 2% of our GDP in (science) and led the world in everything, from internet to GPS. Today we invest less than 1%," Biden said.

He noted that the US used to rank top in the world in research and development, but today it ranks 9th, adding: "China was No. 8 decades ago, now they are No. 2, and other countries are closing in fast."

"This law will get us moving again. It authorizes funding to boost our research and development, (which) will ensure that the United States leads the world in the industries of the future -- in quantum computing, artificial intelligence, advanced biotechnology vaccines for cancer cures," he explained.

Pointing out that he awarded Steve Jobs a posthumous Presidential Medal of Freedom last month, Biden said the Apple co-founder "dared to think differently" throughout his life.

"CHIPS and Science Act will inspire a whole new generation of Americans ... Right now, NASA has missions, going back to the Moon, then to Mars, the Sun and beyond, capturing images of distant galaxies," he said.

"This law funds the entire semiconductor supply chain for research and development ... The Act will create more than one million construction jobs alone over the next six years, building semiconductor factories in America," Biden said.

Biden said he will soon be signing Inflation Reduction Act into law that is going to lower the cost of health care and energy and make historic investments to tackle climate crisis.

House of Representatives Speaker Nancy Pelosi said the bill provides the US to declare its economic independence and strengthen its national security. "The bill will ensure that America is better equipped than ever before, to compete for and win the 21st century."

"We secure the tools that the administration needs to identify develop and recruit our nation's best minds, building an inclusive STEM workforce and fostering innovation in every corner of America," she said. -