Joe Biden signs order on $52 bn chips law implementation

United States President Joe Biden signed an executive order on implementation of the $52.7 billion semiconductor chips manufacturing subsidy and research law.
BE SemiconductorEarlier this month, Joe Biden signed the bill to boost efforts to make the United States more competitive with China’s science and technology efforts. By subsidizing U.S. chip manufacturing and expanding research funding, the law aims to alleviate a persistent shortage that has affected everything from cars and weapons to washing machines and video games.

The Chips and Science law also includes an investment tax credit for chip plants estimated to be worth $24 billion.

The White House said the Commerce Department launched The department will make funding awards for chips production.

Commerce Secretary Gina Raimondo said the department has been preparing for months for the program.

Joe Biden’s order sets six primary priorities to guide implementation and establishes a 16-member interagency CHIPS implementation council to be co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Acting Office of Science and Technology Policy Director Alondra Nelson. The council will include the secretaries of Defense, State, Commerce, Treasury, Labor and Energy.

It is not clear when Commerce will formally make available semiconductor chips funding for prospective applications or how long it will take to make awards, Reuters news report said on Thursday.

The White House said the chips program will include rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely.

Progressives argued the bill is a giveaway to profitable chips companies that previously closed U.S. plants, but Joe Biden argued earlier this law is not handing out blank checks to companies.