With the ink still wet on the CHIPS and Science Act, the once grim outlook of the future has taken a turn for the better. On the South Lawn of the White House, President Biden signed into law the piece of legislation that will inject life into the domestic production of semiconductors. The legislation will infuse over $50 billion into the overall infrastructure of the manufacturing and research industry which has been crippled over the past year.
With semiconductor chips at the forefront of manufacturing shortcomings, industries across all sectors have seen a downfall from the auto, medical, and technology industry. The Creating Helpful Incentives to Produce Semiconductors for American Act (CHIPS) brings a whopping $10 billion investment to technology hubs with 25% investment tax credits for the manufacturing of semiconductors. In a climate where much of the world is in rebound mode from the Covid19 pandemic, the recent fears of a recession seemed imminent. The signing of the Chips and Science Act is a major win for the country! The bill drew bipartisan support on the brink of the best jobs report to come out since 1977, posting an almost 30% increase from last quarter.
The all inclusive legislation also includes $100 billion in scientific research with a large portion of those funds allocated to the NSF. The “Once in a generation investment in America,” – President Biden signifies a shift that will display the country’s commitment to lead the charge in innovation and technology. With the advancements to 5g and medical breakthroughs such as Messenger RNA which holds promise for terminal illnesses like, HIV, Cancer and sickle-cell. In attendance for the historic signing of the bill were several key technology giants; Lockheed Martin, Intel, HP and Micron who committed $40 billion towards the production and manufacturing of semiconductors.
The Creating Helpful Incentives to Produce Semiconductors for American Act is a saving grace measure that will revitalize all sectors of the economy. From the everyday products used everyday, to the transportation modules, electric grids, military and even manufacturing are affected by semiconductors. The recent spike in fuel prices to record highs’ in most parts of the country correlated with the irritation of the supply chain.
Announced in June 2021, larger tech companies such as Apple, Amazon, and Tesla began the development of their own in-house chip as a measure to off-set the shortage. Facebook led the charge in the social media sector, leading other platforms to follow suit. “It’s time for tech companies to become independent and proactive”, “I’m interested to see how CHIPS will help small businesses in the technology sector”, states Atnoine McLaughlin. Antoine is the founder of the Kandiid, the new social marketplace app that provides resources for small business owners and everyday people to socialize + monetize. Antoine also explained, “We at Kandiid, saw first hand how the shortage of the semiconductor chips affected normal everyday folks.”
The signing of the The Creating Helpful Incentives to Produce Semiconductors for American Act gives American companies the ability to build upon technological advancement instead of outsourcing to other countries. On the hills of a 64-33 vote passed by the senate, it is uncertain that the CHIPS American Act will make an immediate impact. One thing is for certain, American made jobs will definitely stimulate competitiveness with China who has had a stronghold on the technology for decades. China’s investment in semiconductor technology has more than tripled in the last 10 years with a 29% edge giving them the title as the world’s leader opposed to the United States at 13%. That’s a decline of nearly 65% since 1990!
Overall, the signing of the Creating Helpful Incentives to Produce Semiconductors for American Act is a step in the right direction. President Biden vowed stiff restrictions and withdrawal of Federal Funding for any U.S. Semiconductor manufacturers that fail to meet the commitments made forward in the new bill.
