China News Agency, Washington, August 9 (Reporter Chen Mengtong) US President Biden signed the "Chip and Science Act" at the White House on the 9th.
The bill provides huge subsidies to the domestic chip industry in the United States, and requires any company that receives subsidies from the United States to manufacture chips in the United States.
The White House said in a statement on the same day that the bill would provide $52.7 billion for U.S. semiconductor R&D, manufacturing and workforce development.
Of that, $39 billion will go to incentives for semiconductor manufacturing and $2 billion for traditional chips used in cars and defense systems.
In addition, companies building chip factories in the United States will receive a 25% tax cut.
Biden said at the bill signing ceremony that although the United States maintains its lead in chip design and research and development, only 10% of the world's semiconductors are produced in the United States.
Supply chain disruptions caused by the COVID-19 pandemic have pushed up costs for American households and individuals.
"We need to make these chips in the U.S. to reduce daily costs and create jobs."
Biden said the bill would fund the entire U.S. semiconductor supply chain, boosting the chip industry's critical investment in research and development.
The bill requires any chip company that receives U.S. government funding to manufacture the technology they develop in the United States.
That means "invest in the US, research and develop in the US, and manufacture in the US".
In addition to direct support for the U.S. chip industry and manufacturing, the bill provides for a number of measures to increase investment in U.S. science and engineering.
Under the act, the National Science Foundation will establish a Technology, Innovation and Partnerships Council to focus on the development of semiconductors and advanced computing, advanced communications technology, advanced energy technology, quantum information technology and biotechnology.
At the same time, the act also authorizes $10 billion to invest in regional innovation and technology centers across the United States to strengthen cooperation between local governments, universities, and businesses in technological innovation and manufacturing.