[Asia Economy New York=Special Correspondent Joselgina] On the 9th (local time), U.S. President Joe Biden signed and promulgated the 'Chips and Science Act,' which involves massive investments in the semiconductor and science sectors to counter China. A total of $280 billion (approximately 366 trillion KRW) will be invested to advance the U.S. semiconductor industry and maintain technological superiority in the future.
President Biden stated at the bill signing ceremony held at the White House, "This bill is a once-in-a-generation investment for America."
After more than a year of discussions, the bill passed both the House and Senate at the end of last month. It was created to check China and strengthen the semiconductor supply chain within the U.S. Specifically, it provides a total of $52 billion in support for building semiconductor manufacturing plants and research and development (R&D) centers in the U.S., along with a 25% tax credit for the companies involved. The bill also includes large-scale support for innovation in advanced fields and scientific research. Through this, the Biden administration aims to maintain the U.S.'s technological edge in advanced industries while reducing dependence on overseas semiconductors and strengthening national security.
President Biden pointed out, "Semiconductors smaller than a finger form the foundation of the economy, from smartphones to automobiles," adding, "Thirty years ago, 30% of all semiconductors were made in the U.S., but now it is less than 10%." He also mentioned that China, South Korea, and Europe are making massive investments in the semiconductor industry, reaffirming the U.S.'s commitment to fostering the related industry by saying, "America is back."
He emphasized, "It is no surprise that the Chinese Communist Party lobbied to block the passage of this bill," and added, "America must lead the world in advanced chip production. This law will make that happen."
The Biden administration expects private investment and spending to surge in addition to federal financial support. The White House has already confirmed that several private companies are making large-scale investments in new semiconductor facilities. Micron plans to invest $40 billion in memory semiconductor production facilities together with Qualcomm. The market expects that major beneficiaries of this bill will include U.S. Intel, Taiwan's TSMC, and South Korea's Samsung Electronics.
On the day, President Biden credited the business leaders and lawmakers attending the signing ceremony, including those from Lockheed Martin, Intel, and Micron, saying, "America is in a better position than any other country in the world to win the 21st-century economic competition. The reason I am optimistic about our country's future is because of you." He also quoted Steve Jobs, who posthumously received the Presidential Medal of Freedom last month, saying, "This bill will inspire the new generation of Americans to answer the next questions."
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