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Biden Signs CHIPS And Science Act Into Law Today

President Biden signed the $280 billion CHIPS and Science Act of 2022 into law today to boost domestic high-tech manufacturing and secure U.S. competitiveness over China.

The Biden administration states that the new bill will “strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the workforce of the future to keep the United States the leader in the industries of tomorrow, including nanotechnology, clean energy, quantum computing, and artificial intelligence.”

Critically, the CHIPS and Science Act is framed as boosting American semiconductor research, development, and production.

“America invented the semiconductor, but today produces about 10 percent of the world’s supply – and none of the most advanced chips,” the Biden administration states. “Instead, we rely on East Asia for 75 percent of global production.”

The President’s Council of Advisors on Science and Technology (PCAST) have also released new recommendations with regard to semiconductor research and development, including a national training network for semiconductor workforce development, the removal of barriers for technology startups, and setting a semiconductor research agenda with fundamental research goals and challenges going forward.

The bill includes $52.7 billion in new semiconductor research, development, manufacturing, workforce development. Of that sum, $39 billion is earmarked for manufacturing incentives, including $2 billion for legacy chips used in automobiles and defense systems.

The Biden administration also states that the bill puts in place guardrails to ensure facilities are not built in China or other “countries of concern,” and that companies will not be permitted to use taxpayer money for stock buybacks or shareholder dividends.

The legislation follows a widespread call to boost domestic microchip manufacturing amid a global shortage of semiconductors. The shortage has had a profound affect on automakers, including General Motors, which has been forced to curb feature and vehicle availability as supplies of the critical components are secured. It’s estimated that GM currently has 90,000 unfinished vehicles currently waiting for new chips.

Looking ahead, GM is taking steps to develop its own family of microchips to reduce the potential impact of future shortages.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Sounds like a good thing! I’m sure some will say why it’s not though.

    3, 2, 1…

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    1. The problem is that they cut no regulations for the chip manufactures. We all paid 5000$ apiece in taxes to these companies to build factories stateside, but by the time they get them up and running, you know past the EPA, OSHA, and zoning regulations, the chips shortage will have resolved itself and it will be too expensive to make them over here because they have to still meet our tougher regulations. And these plants will shut down.

      What they should have done was cut regulations and taxes so that chip manufacturers would want to move here on their own and stay here indefinitely. But these people on know how to throw money at problems, not fix it. If that wasn’t the case Obamacare wouldn’t have made the average premium go up 280%

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      1. It’s not just about taxes and regulations. It’s also wages. Taiwan, South Korea, etc do a lot to lure chip manufacturing plants to those locations including tax benefits. But there is also a low cost skilled workforc. You’re not going to have a low cost skilled workforce in the US, so the chips will be more costly.

        Chips being manufactured in the US is more about national security and supply chain management than anything else.

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      2. Yeah, shoulda cut regulations and taxes! Then the chip manufacturers will come back! ‘Cuz they operate as altruistic entities, just like all businesses! We can trust them to do the right thing all on their own! That’s why all the chip manufacturers are in East Asia right now! Oh, wait….

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      3. There is no requirement that these factories be built stateside. That money will be overseas as soon as they get it. Maybe one token plant gets built stateside.

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      4. while it does sound as if it requires the R&D stuff to be built in the US, it does not ensure the actual chips are built in the US or even North America in the end. Slave wages and an America not able to accept that not everyone gets to have everything for nothing will result in some other 3rd world overpopulated country to come up on the backs of a poorly treated populace. I mean imagine if in 2018 GM decided to modernize the chip factory where chipless Silverados sat, or most likely still sit waiting for China to provide them.

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      5. Spoken like a faithful trumper.

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        1. Trump became POTUS. Then he became a rent free resident in the pea sized brains of unhappy people with no life who blame their sad lives on politicians they don’t even know personally. You became an unimportant speck commenting on a relatively obscure comment board that maybe 100 people view regularly. Good job little donny.

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          1. Biden is a vegetable he can’t do anything right.

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    2. Is it ever that simple, Mike?
      Look for the $25 million hidden in the bill for Pelosi’s favorite charity, the Kennedy Center.

      Reply
  2. Chips and science act????😂 did Science! Science! Science! Pelosi name this thing?

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    1. Funny, I started reading the 1,000+ page bill. CHIPS are a tiny fraction of the bill. Science is actually NASA and the DoD Items like high-risk, experimental prototype jets and intergalactic systems to identify and destroy life-ending asteroids. I probably read more of the bill than anyone in Congress.

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  3. It probably looked good on paper lol.

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  4. I’m dubious on the efficacy of this. The article states that of the $52.7 billion, only $2 billion (3.8%) is earmarked for manufacturing incentives “for legacy chips used in automobiles and defense systems.” Broadly speaking it costs anywhere between $1 billion to $10 billion to erect a new semiconductor plant. Even assuming the lower end of that spectrum, this would mean only one or two factories, at best, could be created in America, and it would take years before they are built. More likely the money will be used to purchase additional equipment rather than building new factories on legacy parts, but this is also problematic since the chipmaking tools themselves are experiencing a shortage. Compounding the issue is how many chips are needed for electric vehicles (one estimate I heard was 5x-6x). Is $2 billion really going to make a dent in solving the automotive chip shortage? If so, then I’m not seeing it.

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    1. Intel is building a $20 billion plant outside of Columbus, Ohio. The point of the money isn’t to hand it over to the chip makers to build a plant. It’s to help build a plant in the US. In Intel’s case they were going to build the plant regardless, but it would have been smaller without the Chips Act.

      From CNN “The CHIPS Act will knock about $3 billion off a $10 billion leading-edge fab, said Intel, which is sinking more than $40 billion into new and upgraded fabs in Arizona, Ohio, New Mexico and Oregon“

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      1. You were making sence untill you mentioned CNN as your source…damn it… Can’t believe you.

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  5. This bill does not limit funds to US companies, any company from anywhere is the world can get the funds. The devil is in the details that no politician will talk about and certainly no media people.

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  6. About 2 years, too late, which is typical of this failed administration. Anyone with a functioning brain could see the effects of covid in the source countries for these computer chips. Ironic that the place where the computer chip was perfected, Silicon Valley, allowed this vital technology to move to Asia. This btw, is a US domestic security issue, front and center; allowing a vital part of a computer control system to be manufactured in countries that do not like us.

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  7. Finally a good move. But didn’t like the raid on Trump’s home. Brandon lost a lot of points for trying to score some dirt on Trump. This is down and dirty and Brandon with egg on his face lost a lot of ground doing this. They have been trying anything and everything short of a wet job to OFF Trump.

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    1. Uh, Brandon didn’t have anything to do with the raid. Dear Leader thought the DoJ was his personal plaything, but Brandon does not. But, back to the subject of the article….

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      1. eskothomson

        The front office has to approve and give the green light on such a high profile mission. Kinda like Nixon denying he knew about Watergate and evidence proved otherwise and he had to sign a resignation letter.
        The closed door rooms in DC have lots of strange things being planned.

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        1. Yup, AG Garland probably gave the green light for the raid. Not Brandon. Again, it was Dear Leader who thought the DoJ was there to do his bidding.

          Dear Leader’s strategy is actually quite brilliant, although he fell ass-backward into it: Commit so many crimes that, as each one is brought to account, at some point you can just say See, they’re picking on me! Look at all the things I’m accused of!

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          1. Please enlighten us with all the crimes that President has committed and charged with…please no CNN/MSNBC/MSM BS talking points and lies of crimes they think he committed, this is still the US and everyone has to be charged with a crime 1st and then found guilty, but is innocent until that point!

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            1. Yup, that’s what I said–Look at all the things he’s accused of! Poor, put upon, harassed old man, all the things he’s accused of doing–why can’t they just leave him alone to manipulate the system as he sees fit?

              Please, he needs your help to defend himself against all these accusations! Send him all your money, now! Well, keep some so you can eat today and tomorrow, but otherwise send him everything you have! Do it quickly, he doesn’t have much time!

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              1. That is what I thought…nothing. have fun paying more taxes, gas, groceries, everything!

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                1. Why, you going somewhere? I heard Putin’s looking for able-bodied men….

                  Reply
            2. So DAN, you’re essentially wanting proof that the Former Leader really did commit crimes. Why aren’t you still pushing to get proof that he actually did win the election versus just accepting his word?

              Reality is, he lost! There was no stolen election. Yet you continue to support him regardless of the endless lies he makes up.

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              1. LOL your post just proves our point. There is and never will be any solid proof. Why you’re bringing up whether he won or lost farly is irrelevant at this point!

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      2. Do you honestly think that JB didn’t know Trump’s lair wasn’t going to get hit? Ok, you’re right. He doesn’t know when it’s time to go to the toilet. Now back to CHIPS which is a pork barrel bill.

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        1. Joe was the guy that approved the warrant on General Flynn in 2016 and lied…

          Go back to the 80s as Biden got caught lying about how smart he was and the media back then did their job and researched his lies and learned he was a dumb f ck and place next to last with no degrees. Within a week he dropped out. He hasn’t changed, still lies and still f cking dumb.

          Just like Hunters affairs …I know nothing…

          Lol

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  8. New reality: Use the tax credit, get raided at night by the FBI.

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  9. Brandon looked pretty rough during that speech, counted 12 coughs that sounded like he was able to keel over. He actually made Schumer look good with the trying to shake his hand twice.

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  10. Can’t wait for Adam and John to discuss this on Thursday’s or Sunday’s No Agenda podcast. I know Adam will read every page if this.

    ITM

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  11. BDS!

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  12. Yeah! FJB! Chips should be made in China!

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    1. Maybe Hunter can help with making a deal with China, just leave 10% for the “big guy”!

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  13. And they will be, no matter what this piece of garbage legislation says. Read the bill, instead of the title. What does Kennedy Center have to do with making CHIPS? Oh, the BS kind. Those CEO’S were crying that if they didn’t get the money, production would be 10 years behind. They should have started sooner. As far as I am concerned, this is pouring piss out of a boot. But you know Mary Barra was at or under the table to get her some more of our tax dollars. That’s why another bill authorized 87,000 IRS agents for when the day the common folk gets tired of this and stops paying their taxes.

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    1. Pelosi made sure the Kennedy Center got $25 million during the early COVID funding. Even the suckups at “The View” thought that looked bad…

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      1. Wow, the View! That says everything ya need to know….

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        1. They never, ever criticize a Democrat, so yeah, it’s a big deal when even The View dunces see through their crap.

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          1. Wow! The View!

            BTW, what’s yer problem with arts organizations? I mean, ya seem to be enthralled by The View, but the Kennedy Center, not so much….

            Ah, don’t bother answering. I already know it–why should my tax dollars blahblahblah. Have nice day!

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            1. Simple question, why did the multi-million dollar Kennedy Center need funding as millions were being laid off or sent home with severely reduced incomes?

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  14. Wow! The View!

    BTW, what’s yer problem with arts organizations? I mean, ya seem to be enthralled by The View, but the Kennedy Center, not so much….

    Ah, don’t bother answering. I already know it–why should my tax dollars blahblahblah. Have nice day!

    Reply
  15. 39 billion in incentives to the same us corporations that outsourced this product offshore. This is insane.

    Reply

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