On Thursday, US President Joe Biden issued an executive order to carry out the 2022 CHIPS Act. The executive action will guarantee US semiconductor chip industry subsidies. The US government's $52.7 billion (almost Rs. 4,21,000 crore) implementation plan intends to promote chip production and research in the nation. The bill is anticipated to strengthen US attempts to compete with China's scientific and technical advancements.
President Biden issued an executive order to implement the $52.7 billion CHIPS Act to increase semiconductor production in the US, according to a statement released by the White House. "Incentives for semiconductor research, development, and manufacture" will be offered by the act.
Days after President Biden signed the CHIPS Act earlier this month, the new event occurred. The regulation is anticipated to contribute to the resolution of the chip shortage, which has impacted a number of industries, including the automotive, home appliance, and electronic and gaming industries.
A 16-member interagency CHIPS implementation council has also been established by Biden's directive. It will be composed of the secretaries of defence, state, commerce, the treasury, labour, and energy. The timing of when the US government will begin sponsoring semiconductor chips, however, is unknown at this moment.
China, however, has denounced the US CHIPS Act. Wang Wenbin, a spokesman for the foreign ministry, claims that the action will "disrupt international trade and alter global semiconductor supply networks. China vehemently rejects that.
