US President Joe Biden signed the CHIPS and Science Act into law on Tuesday, providing $52 billion in funding for the country’s semiconductor manufacturing industry in an effort to boost national production.
The Act is set to unlock $280 billion in funding to enhance US technology and manufacturing, as the country seeks to build its sector to compete against China.
The CHIPS and Science Act marked a rare occasion of bipartisan cooperation, with Democrats and Republicans throwing their hats into the ring to support US tech production.
The US has seen its slice of the semiconductor pie shrink dramatically over recent decades, with manufacturing capacity falling from 37% to 12%, according to the Semiconductor Industry Association.
Meanwhile, an estimated 75% of global production capacity is based in Asia.
The funding is set to be spread across five years, starting with $19 billion this year and $5 billion earmarked for 2026.
Biden confirmed the bill had also reserved $200 billion in funding for national security and intelligence sectors, including quantum computing and artificial intelligence.
“Today I’m signing into law the CHIPS and Science Act. A once in a generation investment in America itself. A law that the American people can be proud of,” said Biden.
