Joe Biden signs law to restart US semiconductor production

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US President Joe Biden signed a law on Tuesday that releases $ 52 billion in subsidies to revive the production of semiconductors in the United States.

The passage of this law represents for Joe Biden a victory after a long-term fight and good news as the mid-term elections approach. The law ” amplifies our efforts to manufacture semiconductors here in America “, said the American president, praising the entrepreneurs, who are the reason for his “ optimism about the future of the country.

The text, adopted at the end of July by Congress, plans to release 52 billion dollars in subsidies to relaunch the production of semiconductors in the United States and tens of billions more for research and development. This investment plan will reduce the cost of daily living, create well-paying industrial jobs in the country and strengthen the leadership of the United States in the industry of the future “, had commented the president in a press release after the vote in Congress.

50 billion investment

According to the White House, this commitment to supporting the high-tech industry is already attracting private funds, with some $50 billion invested in semiconductors. Micron Technology notably announced on Tuesday a plan of 40 billion dollars in the United States. This investment will be partly financed by subsidies and tax credits provided for by law.

« This legislation will allow Micron to grow domestic memory production from less than 2% to 10% of the global market over the next decade, making the United States the home of memory manufacturing and research and development. most advanced in the world “, greeted the CEO of Micron, Sanjay Mehrotra, quoted in the press release. The group claims largest chip manufacturing investment in U.S. history », with the eventual creation of « up to 40,000 new American jobs ».

« Two other companies, GlobalFoundries and Qualcomm, on Monday announced a $4 billion partnership to produce chips in the United States that would otherwise have gone overseas. “, underlined for his part Joe Biden.

Demand for semiconductors has exploded during the pandemic, causing global shortages further exacerbated by the closure of Chinese factories in the face of resurgences of Covid-19. The United States, whose share in world production has fallen sharply in recent years to the benefit of Asia, has suffered from these shortages. This has in particular slowed the production of new cars last year, causing automobile prices to soar. But it has also had an impact on computers, smartphones and vacuum cleaners, of which semiconductors are essential components.

Read also : Taiwan: the number one in semiconductors warns China that threatens the island

(With AFP)

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