President Joe Biden Signs Bill To Boost US Chips, Compete With China's Industry

Biden said that the Bill will help 'win the economic competition in the 21st century.

US President Joe Biden.

(Photo Courtesy: Facebook/Joe Biden)

United States (US) President Joe Biden on Tuesday, 9 August, signed a semiconductors investment bill to boost the industry's competitive edge against China.

The Chips and Science Act, which includes a package of $52 billion, aims to promote the manufacture of microchips domestically, as per AFP.

"Today, I sign into law the CHIPS and Science Act. It’s a once-in-a-generation law that invests in America by supercharging our efforts to make semiconductors here at home. Today represents a more secure economy, jobs, and a stronger future for our nation. America is delivering," Biden said.

The US government has repeatedly emphasised its commitment to bolster high-tech industries, and draw in private investors in the market. So far, around $50 billion has been generated in new semiconductor investment alone.

'Bill Will Help Win Competition in 21st Century'

Biden said that the money injected into the the bill will help "win the economic competition in the 21st century."

The legislation represents a rare consensus in an otherwise polarised Congress, with several Republicans also pledging support for it.

The bill aims to create jobs and bring about the construction of factories, in addition to strengthening the country's supply chains. It will also provide $52 billion in subsidies and additional tax credits to firms that produce chips in the US.

Semiconductors are extremely essential as they are a central component of thousands of products, from washing machines to sophisticated weapons.

Although semiconductors were invented in the US, the country only accounts for 10 percent of worldwide supply. Also, 75 percent of supplies used by the country come from east Asia, the White House said.

In July, the US Senate had also passed a $280 billion Industrial Policy Bill to compete with the Chinese market.

(With inputs from AFP.)