The President of the United States signed this Thursday, August 25, the chip law that will provide subsidies for 52,000 million dollars for the manufacture of chips, in the face of global shortages and thus avoid dependencies on other markets.
Biden signed the bill to boost efforts to make the United States more competitive with China’s science and technology efforts. By subsidizing US chipmaking and expanding research funding, the law aims to ease a persistent shortage that has plagued everything from cars and guns to washing machines and video games.
The “Chips and Science” law also includes an investment tax credit for chip plants estimated to be worth $24 billion.
The White House said the Commerce Department launched CHIPS.gov. The department will award funding awards for chip production.
Commerce Secretary Gina Raimondo said the department has been preparing for the program for months.
“We are committed to a process that is transparent and fair,” Raimondo said. “We will move as quickly as possible to deploy these funds, while ensuring the necessary time to conduct due diligence.”
The White House said the chip program “will include a rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely.”
Progressives argued that the bill is a gift to profitable chip companies that previously closed plants in the United States, but Biden has previously argued that “this law is not handing companies blank checks.”