U.S. will allocate $280 billion to support semiconductor manufacturing - a once-in-a-generation investment in America

The United States will invest $280 billion in the semiconductor industry. The relevant legislation was signed into law by President Joe Biden.

What we know

Biden said that such investments in America are only once in a generation. The U.S. wants to increase semiconductor manufacturing in its territory. This will create many jobs domestically and reduce costs.

The President emphasized that the chips are used for the production of anti-tank missile systems Javelin, which the USA sends to Ukraine. At the same time such electronics are needed to create future weapons.

Both houses of Congress approved the initiative at the end of July 2022. It provides $52 billion from the federal budget as grants for the development of the semiconductor industry in the United States. The initiative also includes allocation of money for scientific and technological innovations and launching regional technology centers.

In the near future, Micron, the leading semiconductor manufacturer in the U.S., will announce a $40 billion plan to increase domestic chip production. In addition, Qualcomm and GlobalFoundries will unveil a $4.2 billion plan to expand their New York chip manufacturing plant.

Source: Business Standard, The Washington Times