US President Joe Biden signs order for implementation of CHIPS Act, forms Council for Policy Development

US President Joe Biden on Thursday signed an order to implement the 2022 Chips Act. The executive order would ensure subsidies for manufacturing semiconductor chips in the US. The US government’s $52.7 billion (approximately Rs 4,21,000 crore) implementation plan aims to encourage chip manufacturing and research in the country. The bill is expected to boost America’s competitive efforts against China’s science and technology developments.

in an officer Statement By the White House, President Biden signed an executive order to implement the $52.7 billion Chips Act to boost chip manufacturing in the US. The Act will provide “incentives for semiconductor research, development and manufacturing”.

The development comes days after President Biden signed the CHIPS Act earlier this month. The legislation is expected to help address chip shortages that have affected several industries including automobiles, home appliances as well as electronic and gaming devices.

Biden’s order also created a 16-member Interagency Chips Implementation Council, which would include the secretaries of defence, state, commerce, treasury, labor and energy. However, there is no information yet about when the US government will start funding semiconductor chips.

Meanwhile, China has condemned the US Chips Act. According to foreign ministry spokesman Wang Wenbin, the measure would “disrupt international trade and distort global semiconductor supply chains. China strongly opposes this.”