Aug. 9 (UPI) President Joe Biden visited New Mexico on Wednesday to showcase the advancements achieved under the CHIPS and Science Act, which he signed into law a year ago. The legislation aims to boost semiconductor manufacturing throughout the United States.
During his visit to New Mexico’s Arcosa plant, Biden highlighted the positive outcomes made possible by the CHIPS Act, including the construction of wind turbines. He described this as evidence that his economic plan, known as “Bidenomics,” is effectively achieving its intended goals.
“That’s Bidenomics. Since I took office, we’ve attracted over half a trillion dollars in manufacturing investments here in America,” Biden stated. “Bidenomics is about bringing supply chains back home.”
Biden emphasized that the work being done at Arcosa aligns with broader efforts to promote environmentally-friendly manufacturing practices.
“I’m not here to declare victory in the economy. We have a lot of work left to do,” Biden acknowledged. “Bidenomics is another way of saying restore the American Dream.”
According to Biden, the CHIPS Act has allocated $230 billion towards revitalizing chip production in the United States.
“Where is it written that America can’t lead the world again in manufacturing?” Biden questioned. “Instead of exporting American jobs, we’re creating American jobs and exporting American products.”
Biden highlighted the creation of over 800,000 new manufacturing jobs nationwide since he took office. He positioned this as part of his comprehensive economic plan to stimulate investment, foster job creation, and drive transformative climate policy changes.
Under Bidenomics, Biden asserted that unemployment is low, job creation is high, and inflation is being brought under control.
“Inflation is now at its lowest point in two years,” Biden stated. “Wages are growing faster than inflation.”
While acknowledging the need for further measures to address inflation, Biden argued that the inflation rate in the United States is lower than in other major economies worldwide.
Biden dismissed claims that higher worker wages or government assistance during the pandemic were responsible for high inflation. He attributed the increase in global inflation post-pandemic to a combination of factors.
Biden expressed great optimism about America’s future.
The White House reported that the CHIPS Act has led to the development of numerous clean energy and manufacturing projects, attracting $166 billion in private investments to the tech industry over the past year. Additionally, nearly $53 billion in federal funds have been designated to establish a national network of semiconductor manufacturers.
On August 9, 2022, Biden signed the CHIPS Act into law, prompted by the vulnerabilities in U.S. manufacturing exposed during the COVID-19 pandemic due to heavy reliance on foreign technology.
“Over the coming months, my administration will continue to implement this historic law, ensuring that American union workers, small businesses, and families benefit from investments generated by the CHIPS and Science Act. We will make America a leader in semiconductor manufacturing once again,” Biden stated in a preceding statement.
The CHIPS Act incorporates several provisions aimed at strengthening supply chains, supporting national security through the adoption of critical technologies, and bolstering the nation’s investment in technological research and development. The White House noted that investment in technological R&D has decreased to less than 1% of GDP since the mid-1960s.
Biden remarked that the CHIPS Act is strategically enhancing America’s position in the global economy during a critical time when China poses a threat to expand its geopolitical influence.
“America invented semiconductors — and today, they power everything from cell phones to cars to refrigerators. But over time, the United States went from producing nearly 40% of the world’s chips to just over 10%, making our economy vulnerable to global supply chain disruptions,” Biden explained. “The CHIPS and Science Act aims to change that.”
The 2022 law introduced a 25% tax credit for capital investments in semiconductor manufacturing, providing an incentive for companies seeking to enter the domestic technology sector.
The Commerce Department announced $39 billion in funding for projects to construct, expand, or modernize existing semiconductor manufacturing facilities. This effort includes incentives under the CHIPS Act to enhance wireless networks’ compatibility and establish the National Semiconductor Technology Center to encourage further private sector research and development.
At least 50 community colleges across 19 states have announced programs to prepare workers for jobs in semiconductors.
The White House revealed that they have received over 460 statements of interest from companies seeking to launch semiconductor projects in 42 states.
Previously, the administration expressed its commitment to preventing advanced technology from freely flowing to China, which holds a dominant position in the global market for rare earth minerals necessary for high-tech chips.
Nearly a month after the law took effect, Commerce Secretary Gina Raimondo announced a 10-year ban on U.S. companies receiving CHIPS funding from constructing advanced technology facilities in China, citing national security concerns.
As part of the effort, the Biden administration is providing grants to promote tech development across the United States. Eligible businesses and government groups can apply to be designated as a Tech Hub, similar to San Francisco’s Silicon Valley, which is a community of businesses focused on technological innovation.
In his 2024 budget request to Congress, Biden has proposed $4 billion to expand funding for future industries, aiming to establish the United States as the global leader in chip and semiconductor manufacturing.
In April, the European Union passed its own version of the CHIPS Act, allocating $47 billion to increase their market share in semiconductors by the end of the decade.
