China's invitation to the “technology race” is a bad signal for Taiwan.
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US President Joe Biden today signed a law on stimulating the production of domestic semiconductors, reports “Voice of America”.
The law provides $52.7 billion in subsidies for U.S. semiconductor manufacturing and research, and to help the U.S. better compete with China in science and technology.
Also read: The economic question: What is Taiwan is interesting to China, and why the United States will not agree to it
“The future will be made in America,” said Biden, calling the event “a once-in-a-generation investment in America.”
Some Republicans joined Biden on the White House lawn to witness the signing of the chip bill, which has been in the works in Congress for several years. The lawmakers were joined by executives from Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices at the signing.
The White House said the bill's passage would spur new investment in chips, noting that Qualcomm on Monday agreed purchase another $4.2 billion worth of semiconductors at the GlobalFoundries plant in New York, bringing the total commitment to $7.4 billion through 2028.
Micron has announced a $40 billion investment in memory chip manufacturing that will increase the U.S.'s global share of the semiconductor market from 2% to 10%.
The legislation is also aimed at meeting chip demand. , the lack of which affected all areas of production, including the automobile industry, the defense complex, the production of computers and household appliances.
This law, which is very important in the industrial policy of the United States, also provides for 25 % investment tax credit for chip factories, valued at $24 billion.
The law would provide $200 billion over 10 years to boost U.S. research to better compete with China. Congress will have to pass separate appropriations legislation to fund these investments.
Biden noted that the US needs chips for key weapons systems such as Javelin missiles.
“It is not surprising that the Chinese Communist Party actively lobbied American business against this bill,” Biden said.
Many US lawmakers said they typically do not support large subsidies for private companies, but noted that China and the EU are providing billions in incentives to their chip companies. They also cited national security risks and huge problems with the global supply chain that are hampering global production.
The Chinese Embassy in Washington said China “strongly opposes” the bill, calling it “a mentality Cold War times”.
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It is worth noting that the aggravation of the Taiwan problem probably also stimulated American lawmakers and the president to think about US independence from Asian chips. As a reminder, Taiwanese companies supply 63% of semiconductors to the world market, compared to 12% from the USA. Currently, only Taiwan's TSMC and South Korea's Samsung Electronics have the technology to produce advanced 5-nanometer chips.
