President Biden Signs CHIPS Act Into Law

Shannon Davis

2 years ago

Earlier today, President Joe Biden signed the CHIPS and Science Act, a historic investment in the U.S. semiconductor industry. The legislation provides a 25% tax credit for U.S. facilities that produce semiconductors or chipmaking equipment and $52 billion in funding for new semiconductor programs. The funding includes $39 billion for grants available to chip manufacturers as well as semiconductor equipment and materials suppliers and $11 billion for federal semiconductor research programs.

“The CHIPS and Science Act secures landmark investments to bolster semiconductor manufacturing and R&D infrastructure as well as a wide range of ancillary industries in the United States,” said Ajit Manocha, SEMI president and CEO, who attended the signing ceremony. “We thank President Biden, Secretary Raimondo, the original CHIPS Act sponsors, leadership in Congress and the committees of jurisdiction for their support in enacting the investment tax credit and funding for CHIPS Act programs.”

“SEMI looks forward to continuing collaboration with the U.S. government and our member companies to ensure timely implementation of these programs to strengthen the U.S. semiconductor supply chain,” said Manocha. “The CHIPS and Science Act funding will also be instrumental in buttressing the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program and related programs in order to drive chip industry innovations that will better the lives of people around the world.”

David Anderson, President of the New York Center for Research, Economic Advancement, Technology, Engineering and Science (NY CREATES) issued the following statement:

“With President Biden’s signature today, the United States sent a message around the globe that we’re committed to re-establishing American leadership and ingenuity in the semiconductor industry. As I’ve said before, this is not about one industry – virtually every industry relies on semiconductors, making this historic investment critical to both our economic and national security.

“Between global industry leaders and innovative start-up enterprises and many others, New York has the assets and the talent to bring the industry together. An advanced research hub like the National Semiconductor Technology Center needs a proven chip innovation ecosystem like New York’s, which boasts nation-leading infrastructure that is already operational and supported by partner companies, academic institutions, and a highly skilled workforce. NY CREATES has been preparing for more than two years to support the Federal government in this endeavor and we’re ready to have the NSTC headquartered in New York, at the Albany Nanotech Complex.”

Keith Krach, former Under Secretary of State and Chairman of the Krach Institute for Tech Diplomacy at Purdue, issued the following statement after his attendance at President Biden’s signing of the CHIPS and Science Act into law:

“This is a big day for America – for national security, our global economic security, and our long-term prosperity. The investment will create thousands of jobs across the entire supply chain and create a broad ripple effect of technical training and know-how throughout the tech ecosystem.

“Our adversaries, starting with the Chinese Communist Party, are playing a game of four-dimensional military, economic, diplomatic, and cultural chess, and the crossroads and the main battlefield is technology. The CHIPS and Science Act will help American tech companies build, expand, and modernize domestic facilities and equipment for semiconductor production and accelerate research in AI, quantum computing, 6G, hypersonics, and other national security technologies.

“General Secretary Xi Jinping is propping up China’s semiconductor manufacturing by committing $1 trillion over the next 10 years. He is terrified that a united United States will commit to the equivalent of a moonshot. The bipartisan CHIPS and Science Act may do exactly that, taking the technological advantage away from China Inc. and returning it to the United States.

“Our State Department team was committed to the national security strategic imperative of securing the semiconductor supply chain and bringing high-tech manufacturing back home where it belongs. We partnered with the Commerce Department to onshore a TSMC facility in Arizona. We hoped the deal would inspire Congress to pass the bipartisan Endless Frontier Act that we architected with Senate Majority Leader Charles Schumer and Senator Todd Young to boost investment in high-tech research.”

“In the days, months, and years ahead, I look forward to seeing the positive impacts the CHIPS and Science Act will have on strengthening our supply chains, building our tech workforce, and fortifying our national and economic security.”