The news: President Joe Biden signed the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act into law, releasing $52 billion to subsidize semiconductor production as well as billions in tax credits to kick-start chip manufacturing investments in the US.
“Today is a day for builders. Today America is delivering,” Biden said at the signing ceremony. He was joined by various tech executives, union presidents, and political leaders from both parties.
Why it’s worth watching: The CHIPS and Science Act is considered a generational piece of legislation that comes at a time of surging global competition, particularly with China. It carries with it the same urgency as the National Aeronautics and Space Act of 1958 which culminated in the Space Program and made America the first country to land on the moon.
The challengers: At the very least, the CHIPS and Science Act puts the US on par with China and the EU in terms of government investments and incentives.
Key takeaways: While it may take years to reap the benefits of the CHIPS and Science Act, the incentives to develop US factories and technologies could go a long way in securing commitments from industry leaders.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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