WASHINGTON, Aug 9 (KUNA) -- US President Joe Biden signed into law a USD 280 billion bill on Tuesday aimed at boosting domestic semiconductor production and funding science and technology research.
The move lawmakers say is crucial to ease supply chain disruptions, bolster national security and increase competitiveness with China.
The CHIPS and Science Act contains USD 52.7 billion in subsidies to boost domestic semiconductor production, along with a 25 percent tax incentive for investments in domestic chip investments worth roughly USD 24 billion.
The bill passed the Senate and House last month in a bipartisan fashion.
Biden's signature comes as his administration seeks to combat inflated prices, including on new and used vehicles, which have spiked during the pandemic due to a shortage of critical semiconductor chips, which are mostly manufactured overseas.
"Today I'm signing into law the CHIPS and Science Act, a once in a generation investment in America itself; a law that the American people can be proud of," Biden said during the signing ceremony.
"This law gets us moving up once again. It authorizes funding to boost our research and development funding closer to 1 percent of the GDP, the fastest single year percentage increase in 70 years, and it's going to make a difference," Biden added.
"Folks, we need to make these chips here in America to bring down everyday costs and create jobs," Biden said.
The CHIPS and Science Act will boost American semiconductor research, development, and production, ensuring US leadership in the technology that forms the foundation of everything from automobiles to household appliances to defense systems.
The law will also ensure the United States maintains and advances its scientific and technological edge. (end)