Biden Signed The Law To Support The Production Of Semiconductors In The US
On August 9, US President Joe Biden signed into law the Semiconductor Support Act, which provides $52.7 billion in subsidies and tax breaks to American companies engaged in research, development and manufacturing of these products.
It is expected that private chip companies will be able to qualify for and receive subsidies, which will increase the competitiveness of the United States in relation to the products of the Chinese semiconductor industry, Reuters reports from the signing ceremony at the White House.
It was attended by the heads of IT companies such as Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices (AMD), the governors of Pennsylvania and Illinois, the mayors of Detroit, Cleveland and Salt Lake City and legislators.
Critics of the bill argued that it would be a boon to lucrative chip companies that had previously closed factories in the US. Biden stated that “this law does not issue blank checks to companies.” It aims to mitigate the shortage of chips that has affected many industries – automotive, weapons, home appliances and video games.
It is expected that after the signing of the law and its entry into force, the US Department of Commerce will develop and publish rules for considering applications for subsidies. But the timing for this work is still unclear, and it is not known how long it will take to receive funding for the announced projects.
