President Biden Signs CHIPS Act to Drive Semiconductor Industry Growth

President Joe Biden on Tuesday signed into law a bipartisan bill that will allocate $54.2 billion in total funding to support U.S. semiconductor research and development, manufacturing and workforce development to create jobs and secure the domestic chip supply.

The CHIPS and Science Act will provide a 25 percent investment tax credit for spending on semiconductor production, including investments in the manufacturing of specialized equipment used in chip production.

The appropriations in the legislation includes manufacturing incentives valued at $39 billion, including $13.2 billion in funds for research and workforce development, $2 billion for legacy chips used in defense systems and automobiles and $500 million to ensure the security of international information communications technology and chip supply chain efforts.

The measure will earmark $10 billion in funds to invest in regional technology and innovation hubs, allot $1.5 billion to deploy wireless technologies that use open radio access networks and create a technology, innovation and partnerships directorate within the National Science Foundation to prioritize semiconductors, quantum information technologies, advanced computing and biotechnology, among other areas.

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