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Joe Biden signs law to restart semiconductor manufacturing in the country

US President Joe Biden signed legislation today that frees up $52 billion in subsidies to revive semiconductor manufacturing in the United States

The Democratic president said that specific investment in these pieces at the heart of modern electronics will help his country win “economic competition in the 21st century.”

The text, approved in late July by Congress, also provides tens of billions of dollars for research and development.

The passage of this law represents a victory for Joe Biden after a long struggle and good news ahead of the midterm elections.

The law “strengthens our efforts to make semiconductors here in America,” Biden said, singling out the role of entrepreneurs who are “the reason I’m optimistic about the future of our country.”

This investment plan “will lower the cost of everyday living, create good-paying manufacturing jobs at home and strengthen America’s leadership in the industry of the future,” the president said in a statement after the vote in Congress.

Demand for semiconductors skyrocketed during the pandemic, causing global shortages that were further exacerbated by the shutdown of Chinese factories due to the spread of Covid-19.

The US, whose share of world production has fallen sharply in recent years in favor of Asia, has suffered from these shortages. This mainly slowed the production of new cars last year, causing their prices to rise a lot.

According to the White House, this commitment to support the high-tech industry is already attracting private capital, with nearly $50 billion invested in semiconductors. Micron today specifically announced a $40 billion project in the US.

This investment will be funded in part by subsidies and tax credits provided by the law signed by Joe Biden.

Signing the law is “a historic investment in America’s future,” said US Chamber of Commerce Vice President Neil Bradley.

“This will stimulate domestic microchip production, strengthen supply chains, increase research and development, and strengthen our national security.”

On Wednesday, Biden will sign legislation aimed at improving support for US veterans exposed to toxic fumes from burning waste on military bases. It is recalled that the ambitious climate and health bill is on its way to the House of Representatives, after its approval on Sunday by the Senate.

Source: AMPE

Source: Capital

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