The White House is touting investments that chip companies are
making even though it remains unclear when the U.S. Commerce
Department will write rules for reviewing grant awards and how
long it will take to underwrite projects.
The chief executives of Micron, Intel, Lockheed Martin, HP and
Advanced Micro Devices will attend the signing, set for 10 a.m.
EDT, as will cabinet officials and auto industry and union
leaders, including United Auto Workers President Ray Curry, the
White House said.
Also attending will be governors of Pennsylvania and Illinois,
the mayors of Detroit, Cleveland and Salt Lake City, and
The White House said the bill's passage was spurring new chip
investments. It noted that Qualcomm Monday had agreed to buy an
additional $4.2 billion in semiconductor chips from
GlobalFoundries's New York factory, bringing its total
commitment to $7.4 billion in purchases through 2028.
The White House also said Micron was announcing a $40 billion
investment in memory chip manufacturing, which would boost U.S.
market share from 2% to 10%.
The legislation aims to alleviate a persistent shortage that has
affected everything from cars, weapons, washing machines and
video games. Thousands of cars and trucks remain parked in
southeast Michigan awaiting chips as the shortage continues to
A rare major foray into U.S. industrial policy, the bill also
includes a 25% investment tax credit for chip plants, estimated
to be worth $24 billion.
The legislation authorizes $200 billion over 10 years to boost
U.S. scientific research to better compete with China. Congress
would still need to pass separate appropriations legislation to
fund those investments.
China had lobbied against the semiconductor bill. The Chinese
Embassy in Washington said China "firmly opposed" it, calling it
reminiscent of a "Cold War mentality."
Many U.S. lawmakers had said they normally would not support
hefty subsidies for private businesses but noted that China and
the European Union had been awarding billions in incentives to
their chip companies. They also cited national security risks
and huge global supply chain problems that have hampered global
(Reporting by David Shepardson; Editing by Bradley Perrett)
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