Biden Signs Order On $52 Billion Semiconductor Chips Law Implementation
The "Chips and Science" law also includes an investment tax credit for chip plants estimated to be worth $24 billion.
President Joe Biden on Thursday signed an executive order on implementation of the $52.7 billion semiconductor chips manufacturing subsidy and research law, the White House said.
Earlier this month, Biden signed the bill to boost efforts to make the United States more competitive with China's science and technology efforts. By subsidizing U.S. chip manufacturing and expanding research funding, the law aims to alleviate a persistent shortage that has affected everything from cars and weapons 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 make funding awards for chips production.
Commerce Secretary Gina Raimondo said the department has been preparing for months for the program.
"We are committed to a process that is transparent and fair," Raimondo said. "We will move as swiftly as possible to deploy these funds, while also ensuring the time needed to perform due diligence."
Biden's order sets six primary priorities to guide implementation and establishes a 16-member interagency CHIPS implementation council to be co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Acting Office of Science and Technology Policy Director Alondra Nelson. The council will include the secretaries of Defense, State, Commerce, Treasury, Labor and Energy.
It is still not clear when Commerce will formally make available semiconductor chips funding for prospective applications or how long it will take to make awards.
The White House said the chips program "will include rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely."
Progressives argued the bill is a giveaway to profitable chips companies that previously closed U.S. plants, but Biden argued earlier "this law is not handing out blank checks to companies."
Earlier this month, Biden signed the bill to boost efforts to make the United States more competitive with China's science and technology efforts. By subsidizing U.S. chip manufacturing and expanding research funding, the law aims to alleviate a persistent shortage that has affected everything from cars and weapons 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 make funding awards for chips production.
Commerce Secretary Gina Raimondo said the department has been preparing for months for the program.
"We are committed to a process that is transparent and fair," Raimondo said. "We will move as swiftly as possible to deploy these funds, while also ensuring the time needed to perform due diligence."
Biden's order sets six primary priorities to guide implementation and establishes a 16-member interagency CHIPS implementation council to be co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Acting Office of Science and Technology Policy Director Alondra Nelson. The council will include the secretaries of Defense, State, Commerce, Treasury, Labor and Energy.
It is still not clear when Commerce will formally make available semiconductor chips funding for prospective applications or how long it will take to make awards.
The White House said the chips program "will include rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely."
Progressives argued the bill is a giveaway to profitable chips companies that previously closed U.S. plants, but Biden argued earlier "this law is not handing out blank checks to companies."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.