Biden signed into law the CHIPS and Science Act of 2022, which lawmakers approved in late July. The legislation provides $52.7 billion in funding to strengthen the United States’ semiconductor manufacturing and supply chains, as well as over $200 billion for scientific endeavors.
Lawmakers passed the legislation in late July amid a global semiconductor shortage linked to disruption of supply chains by the COVID-19 pandemic measures, sanctions and other factors. The shortage has hit hard a number of sectors, including the automotive, electronics and energy industries.
The bill also serves to boost US competitiveness with China, which spends more than twice what the US does on science as a percentage of gross domestic product.
The legislation, which aims to separate the US from Chinese semiconductor supply chains, will limit normal cooperation between the US and China in science and technology, Chinese Foreign Ministry spokesperson Zhao Lijian said last month.