CHIPS And Science ACT-What Is It?
While former President Donald Trump is being indicted (or INDICATED in his words), current President Joe Biden has been plugging along, accomplishing things to help the country and getting little ink. Despite Biden’s lack of attention, the list of policy wins is impressive. One, the CHIPS And Science Act has significant positive implications for Americans, yet few seem to even know about it. What is it?
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Incentives
The CHIPS Act, or Creating Helpful Incentives to Produce Semiconductors, is a piece of legislation that was introduced in the United States Congress in 2020. The goal of the CHIPS Act is to increase American production and research of semiconductors, which are a critical component of many modern technologies including smartphones, computers, and cars.
New Construction
The CHIPS Act provides funding of up to $25 billion to support the construction of new semiconductor manufacturing plants and research facilities in the United States. It also includes incentives for companies to invest in domestic semiconductor production, such as tax credits for building new facilities or expanding existing ones.
The legislation was introduced in response to a global semiconductor shortage that has impacted many industries and caused supply chain disruptions. The shortage has been attributed to several factors, including increased demand for electronics during the COVID-19 pandemic, supply chain disruptions caused by the pandemic, and trade tensions between the United States and China.
Supply Chain Solutions
Proponents of the CHIPS Act argue that increasing domestic semiconductor production will help to mitigate the impact of future supply chain disruptions and reduce the reliance on foreign manufacturers. They also argue that investing in semiconductor research and development will help to maintain American leadership in technological innovation.
The CHIPS Act has received bipartisan support in Congress, and was signed into law by President Biden in June 2021 as part of the larger U.S. Innovation and Competition Act.