The US has taken action against the long-standing semiconductor chip crisis. The country, which is trying to increase technological competition against China, will provide 280 billion dollars of sectoral support, of which 52 billion dollars will be semiconductors. Here’s what you need to know about the US Chips and Science Act.
US bans production in China with chip law
US President Joe Biden has finally signed the CHIPS and Science Act. Within the scope of the law passed in the Senate last week, it is aimed both to find a solution to the chip crisis and to increase competition against countries such as China and Taiwan.
President Biden has announced that they want to encourage investment in the American semiconductor industry. Under the new law, subsidies will be given to “companies producing in the USA only”. $52 billion has been allocated to companies to encourage them to build semiconductor manufacturing plants or factories.
Micron will be provided with $40 billion, while Qualcomm and GlobalFoundries will be provided with $4.2 billion to increase domestic memory and chip production. But companies that want to receive subsidies under the new law must stop production in countries that pose a national security threat. These countries include China, Iran, North Korea and Russia.
In his statement on the subject, President Biden said, “We will invest in America. We will make it in America. “We will win the economic competition of the 21st century in America,” he said.
It is currently unknown which manufacturers will benefit from the subsidy, but many companies that manufacture in the US also have factories in China. For example, Intel wanted to buy a factory in China, but canceled this decision after pressure from the Ministry of Commerce.
So what do you think about the US chip law? You can share your views with us in the comments section.
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