WASHINGTON – Prior to its adoption on Tuesday, the signed CHIPS Act received endorsement from U.S. Commerce Secretary Gina M. Raimondo, the former governor of Rhode Island, who said the legislation will help ease the country’s lagging computer chip manufacturing industry.
The Creating Helpful Incentives to Produce Semiconductors, or CHIPS, Act, which President Joe Biden signed into law on Tuesday, will direct $52.7 billion in subsidies toward domestic semiconductor chip manufacturing and research.
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The funding includes $39 billion for manufacturing incentives, $10.5 billion for research and development, $2 billion for the automobile and defense system legacy chips, and $500,000 for international information communications technology security and semiconductor supply chain activities.
The bill received bipartisan support in Congress, but some have criticized the legislation as a corporate handout that lacks accountability measures.
Raimondo encouraged the legislation’s passage in late July, calling it a vote “to support America’s economy, America’s workers and America’s global competitiveness by committing the resources necessary to support domestic scientific innovation and build more chips in the U.S.”
The country’s semiconductor shortage dates back 40 years, while international manufacturing has increased, Raimondo said.
“With its historic investment in American chipmaking, the CHIPS and Science Act helps fulfill the Biden administration’s goal of revitalizing our domestic manufacturing economy while securing access to an essential technology so America can continue to lead in the 21st century,” Raimondo said.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
Big Deal. It would have passed without Gina’s endorsement. Typical Gina, taking credit for something for which she had very little to do. Cooler and Warmer. Go, Gina, Go. Please just go.