JOBS: CHIPS and Science Act of 2022 is an economic game changer in the production of semiconductors and the economy of the United States
AGN.News
December 6, 2022
WASHINGTON (AGN.News) – Today, President Joe Biden visited Phoenix, celebrating Arizona as a hub for technology companies. He toured the building site of two new microchip plants being built in North Phoenix.
Joining President Joe Biden on-site was the entire Democratic Congressional delegation (except Senator Kyrsten Lea Sinema who was in Washington working on legislation), Governor Douglas Anthony Ducey (Doug Ducey), Governor-Elect Kathleen Marie Hobbs (Katie Hobbs), among many others.
President Biden, speaking of the Taiwanese company building the chip plants, said “They’re going to invest billions of dollars in a new enterprise.”
The company building these two plants will invest $40 billion, create over 10,000 jobs building the plants, and employ another 10,000 tech workers to operate the plants.
The President stressed the importance of major investments in technology and infrastructure in his legacy-building program to grow the U.S. economy.
President Biden delivers tech jobs
President Joe Biden signed an Executive Order on the Implementation of the CHIPS Act of 2022. President Joe Biden signed the bill into law on the South Lawn of the White House on August 9, 2022.
President Biden says factory jobs made possible for scientific research will help to revive the U.S. middle class. The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress.
President Biden said, “What I’m most excited about is people are starting to feel a sense of optimism as they see the impact of the achievements in their own lives…”
He added, “It’s going to accelerate in the months ahead and it’s part of a broad story about the economy we’re building that works for everyone.”
What is The CHIPS Act of 2022
The CHIPS Act of 2022 is divided into three divisions with their own short titles:
Division A is the CHIPS Act of 2022 (where CHIPS stands for “Creating Helpful Incentives to Produce Semiconductors”).
Division B is the Research and Development, Competition, and Innovation Act.
Division C is the Supreme Court Security Funding Act of 2022.
Why was The CHIPS Act needed
Currently, there is a need for the production of semiconductors in the United States. There is a global semiconductor shortage and the Chips Act is intended to provide subsidies and tax credits to chip makers with operations in the United States.
Is there a shortage of chips?
Since 2020, the global chip shortage has been an ongoing global crisis in which the increasing demand for integrated circuits (commonly known as semiconductor chips) exceeds the supply, affecting more than 169 industries.
This crisis has led to major price increases, shortages queues and scalping among consumers for new automobiles, graphics cards, video game consoles, computers, household appliances, and other products that require semiconductors.
Does this Act benefit America?
This global semiconductor shortage has a negative impact on the U.s. economy because of reliance on semiconductors being centered around companies in Asia. U.S. production will help eliminate the problems of this semiconductor shortage as competition with China increases.
The United States is subsidizing the production by supporting companies who build semiconductors here in America. The dollars being invested in U.S. production will have an immediate impact on the economy.
Chips Act grows America’s economy
The CHIPS Act includes $39 billion in tax benefits and other incentives to encourage American companies to build new chip manufacturing plants in the U.S.
Additionally, $11 billion would go toward advanced semiconductor research and development, with $8.5 billion going to the National Institute for Standards and Technology, $500 million for Manufacturing USA, and $2 billion for a new public research hub called the National Semiconductor Technology Center.
$24 billion would go to a new 25 percent advanced semiconductor manufacturing tax credit to encourage firms to stay in the United States, and $200 million would go to the National Science Foundation to resolve short-term labor supply issues.
Microchip companies growing in America
A Taiwanese Chip company, Taiwan Semiconductor Manufacturing Co., is investing $40 billion dollars in the production of semiconductors in North Phoenix near I-17 and Loop 303. This investment will grow the local economy of Arizona communities and by extension the U.S. economy.
The Santa Clara, California-based high technology company Intel, built a plant in Chandler, Arizona. Intel has had an outsized impact on Arizona’s economy and help increase the production of microchips in the U.S.
Additionally, Intel, the largest semiconductor maker in the world by revenue, also has a $20 billion semiconductor factory under development near New Albany, Licking County, Ohio that will employ over 3,000 people.
Biden Administration: Building Back Better!
Thanks to the commitment to job creation by the Biden administration and its focus and dedication to building a thriving U.S. economy in cooperation with state and local communities, Intel and other tech companies are creating opportunities in chip technology.
Building back better an economy that delivers for the American people is something that will help all communities not only in Arizona and Ohio but also in other U.S. communities.
As President Biden said, “What I’m most excited about is people are starting to feel a sense of optimism as they see the impact of the achievements in their own lives.”
The CHIPS and Science Act of 2022 will result in the employment of tens of thousands of people in the tech sector of the economy and have an immediate economic benefit to local communities. Thousands of local jobs will be created to support the companies and their employees.
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