Fact Sheet: The Chips and Science Act will reduce costs, create jobs, strengthen supply chains, and counter China

In President Biden’s first year in office, the Biden-Harris administration has implemented an industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, strengthen American supply chains and accelerate the industries of the future. These policies have spurred a historic recovery in manufacturing, adding 642,000 manufacturing jobs through 2021. Companies are investing again in America, bringing good-paying manufacturing jobs back home. Compared to last year, the construction of new construction centers has increased by 116 percent.

Today, President Biden will sign the bipartisan Chips and Science Act of 2022, which will build on this progress, making historic investments that will inspire American workers, communities and businesses to win the Race of 21.St century It will strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the future workforce that will keep the United States a leader in tomorrow’s industries, including nanotechnology, clean energy, quantum, and more. Computing, and Artificial Intelligence. CHIPs and the Science Act make smart investments so Americans can compete and win in the future.

Spurred by the passage of the CHIPS and SCIENCE Act of 2022, this week, companies announced nearly $50 billion in additional investment in U.S. semiconductor manufacturing, bringing total business investment to nearly $150 billion since President Biden took office:

  • Micron is announcing a $40 billion Investments in memory chip manufacturing, critical to computers and electronic equipment, will create 40,000 new jobs in manufacturing and manufacturing. This investment alone will increase the US market share of memory chip production from less than 2 percent to 10 percent over the next decade.
  • Qualcomm and GlobalFoundries are announcing a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries’ upstate New York facility. Qualcomm, the world’s leading fabless semiconductor company, has announced plans to increase semiconductor production in the US by 50 percent over the next five years.

The CHIPS and SCIENCE Act will boost U.S. semiconductor research, development, and manufacturing, ensuring U.S. leadership in technology that underpins everything from automobiles to home appliances to defense systems. The US invented semiconductors, but today produces about 10 percent of the world’s supply — and none of the most advanced chips. Instead, we depend on East Asia for 75 percent of global production. The CHIPS and SCIENCE Act will unlock hundreds of billions more in private sector semiconductor investment across the country, including manufacturing needed for national defense and critical sectors.

The legislation will ensure that the United States maintains and advances its scientific and technological edge. In the mid-1960s, at the peak of the Moon Race, the federal government invested 2 percent of GDP in research and development. By 2020, that number had dropped to less than 1 percent. Economic growth and prosperity over the past 40 years has left many communities behind and clustered in a few coastal areas. CHIPS and the SCIENCE Act will ensure the future is built in all of America, and unlock opportunities in science and technology for those historically left out.

The Biden-Harris administration has already taken action to ensure the appropriate, responsible deployment of CHIPS and Science Act funds:

  • Coordinated permits for high-tech construction. Today, the Administration is announcing the launch of an area-specific interagency expert work group on permitting and permitting-related project delivery issues for high-technology construction, consistent with the President’s permitting action plan announced in May. This interagency working group will build on the inter-agency CHIPS and SCIENCE Act planning to date between the Environmental Quality, Environmental Protection Agency, and the Department of Commerce. It will help ensure collaboration and coordination among federal agencies, the private sector, and state and local governments to facilitate timely and effective review of all federally funded projects. The task force will also serve as a clearing house for best practices regarding permitting and other project delivery issues to support the implementation of projects funded by the bill.
  • President’s Advisory Council on Science and Technology (PCAST) issues new recommendations on semiconductor R&D. Today, PCAST ​​sent a letter to the President with recommendations for implementing the CHIPS and SCIENCE Act: forming a national microelectronics training network for semiconductor workforce development at educational institutions, including minority-serving institutions and community colleges; fostering innovation by reducing entry barriers for startups; Recommending the development of a “chiplet platform” to enable startups and researchers to innovate rapidly at low cost; And setting the national semiconductor research agenda with basic research and grand challenges, for example, building the first “zetascale supercomputer” that would be 1,000 times faster than the fastest supercomputer available today. The full PCAST ​​semiconductor report will be released this fall.

CHPS and the Science Act:

  • Strengthen US leadership in semiconductors. The CHIP and SCIENCE Act provides $52.7 billion For American semiconductor research, development, manufacturing, and workforce development. It includes $39 billion including in product incentives 2 billion dollars For legacy chips used in automobiles and defense systems, $13.2 billion In R&D and workforce development, and $500 million To provide for international information communication technology security and semiconductor supply chain activities. It also provides a 25 percent investment tax credit for capital expenditures for manufacturing of semiconductors and related equipment. These incentives will protect domestic supply, create tens of thousands of good-paying, union-building jobs and thousands more high-skilled manufacturing jobs, and spur hundreds of billions more in private investment.

The bill requires recipients to demonstrate significant job and community investments, including opportunities for small businesses and disadvantaged communities, while ensuring semiconductor incentives support equitable economic growth and development.

These funds also come with strong guardrails, ensuring that recipients do not build certain facilities in China and other countries of concern, and preventing companies from using taxpayer funds for stock buybacks and shareholder dividends. It would support better-paying, unionized jobs by requiring Davis-Bacon prevailing wage rates for facilities built with CHIPS funds.

  • Promote American innovation in wireless supply chains. Includes Chips and Science Act $1.5 billion To promote and deploy wireless technologies using open and interoperable radio access networks. This investment will enhance US leadership in wireless technologies and their supply chains.
  • Advance US global leadership in future technologies. American leadership in new technologies—from artificial intelligence to computing to biotechnology—is critical to both our future economic competitiveness and our national security. Public investment in R&D lays the foundation for future breakthroughs that over time lead to new businesses, new jobs and more exports.

The CHIPS and SCIENCE Act would establish a Technology, Innovation, and Partnerships Directorate at the National Science Foundation (NSF) to focus on areas such as semiconductors and advanced computing, advanced communications technologies, advanced energy technologies, quantum information technologies, and biotechnology. It will strengthen the commercialization of research and technology, ensuring that what is invented in America is made in America. The Act would reauthorize and expand original and application-inspired research at the Department of Energy’s Office of Science and the National Institute of Standards and Technology to maintain American leadership in science and engineering as the engine of American innovation.

  • Stimulate regional economic growth and development. The CHIPS and SCIENCE Act authorizes $10 billion to invest in regional innovation and technology centers across the country, bringing together state and local governments, institutions of higher education, labor unions, businesses, and community-based organizations to create regional partnerships to advance technology. innovation, and manufacturing sectors.

    These hubs will create jobs, spur regional economic development, and position communities across the country to lead in high-growth, high-wage fields such as artificial intelligence, advanced manufacturing, and clean energy technology. It also allows the $1 billion RECOMPETE pilot program at the Commerce Department’s Economic Development Administration (EDA) to ease the ongoing economic crisis and support long-term macroeconomic growth and job creation in the most disadvantaged communities.

  • Provide STEM opportunities for more Americans to participate in well-paying skilled jobs. Science, technology, engineering, and mathematics (STEM) education and workforce development activities are critical to developing the skills needed to fill the high-skilled jobs of emerging industries built on future technologies. The CHIPS and SCIENCE Act provides new authority to ensure that more people from all backgrounds and from all regions and communities of the country, especially people from marginalized, underserved, and under-resourced communities, can benefit from and participate in STEM education and training opportunities. and expanded investment in STEM education and training in K-12 to community college, undergraduate and graduate education.
  • Drive opportunity and equity for all of America in STEM and innovation. The law authorizes investments to expand the geographic and institutional diversity of research institutions and the students and researchers they serve, including new initiatives that provide opportunities for historically black colleges and universities (HBCUs) and other minority-serving institutions, and other academic institutions. – Mainly underserved students and communities through the National Science Foundation (NSF). CHIPS and the SCIENCE Act also broaden the geographic diversity of research and innovation funding to leverage talent and ideas found across America. The law also gives agencies and organizations a mission and tools to combat sexual and gender-based harassment in science, a demonstrable barrier to participation in STEM for many Americans. Through these investments and initiatives, the bill will support learners, educators, and researchers in minority-serving and emerging research institutions and rural communities, while driving the creation of a broadly participatory, STEM ecosystem that includes people of all backgrounds and experiences. Which seems to benefit all of America.

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