US President Joe Biden signed legislation on Tuesday freeing up $52 billion in subsidies to revive US semiconductor production. The Democrat assured that this investment in these parts at the heart of modern electronics would help his country win “the economic competition of the 21st century.”
The text, adopted in late July by Congress, also provides tens of billions of dollars for research and development. The approval of this law represents for Joe Biden a snatched victory after a long fight and good news as the midterm elections approach.
An explosion in demand
“It will reduce the costs of daily living, create good-paying industrial jobs in the country and strengthen the leadership of the United States in the industry of the future,” he had commented in a press release after the vote in Congress.
Semiconductor demand soared during the pandemic, leading to global shortages further exacerbated by the closure of Chinese factories in the face of Covid outbreaks.
The United States, whose share of world production has fallen sharply in recent years to the benefit of Asia, has suffered from these shortages. This markedly slowed production of new cars last year, driving up prices in the auto industry.
Source: BFM TV