WASHINGTON, USA:
According to the White House, President Joe Biden signed an executive order on Thursday to put the $52.7 billion semiconductor chip manufacturing subsidy and research law into effect.
The legislation to strengthen efforts to make the United States more competitive with China’s scientific and technology activities was signed by Biden earlier this month. The measure aims to relieve a recurring shortfall that has harmed everything from cars and weaponry to washing machines and video games by subsidising US chip manufacturing and increasing research funding.
The “Chips and Science” law also includes an investment tax credit for chip plants estimated to be worth $24 billion.
The White House said the Commerce Department launched CHIPS.gov. The department will make funding awards for chips production.
Commerce Secretary Gina Raimondo said the department has been preparing for months for the program.
“We are committed to a process that is transparent and fair,” Raimondo said. “We will move as swiftly as possible to deploy these funds, while also ensuring the time needed to perform due diligence.”
The order issued by Biden establishes a 16-member interagency CHIPS implementation council, which will be co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Acting Office of Science and Technology Policy Director Alondra Nelson. The order establishes six primary priorities to direct implementation. The secretaries of defence, state, commerce, treasury, labour, and energy will all be represented on the council.
It is still not clear when Commerce will formally make available semiconductor chips funding for prospective applications or how long it will take to make awards.
The White House said the chips program “will include rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely.”
Progressives argued the bill is a giveaway to profitable chips companies that previously closed US plants, but Biden argued earlier “this law is not handing out blank checks to companies.”
