The Biden administration has launched new particulars of its technique for spending $50 billion in funding beneath. President Joe Biden in early August to assist increase the US chip manufacturing trade amid a .
As a part of a plan toand shield nationwide safety pursuits, the CHIPS Act prohibits US tech firms that obtain federal funding from constructing new, superior factories in China for at the very least 10 years.
“Firms who obtain CHIP funds cannot construct modern or superior know-how amenities in China for a interval of 10 years,” Secretary of Commerce Gina Raimondo stated in a press briefing Tuesday. “Firms who obtain the cash can solely increase their mature node factories in China to serve the Chinese language market.”
One of many foremost targets of the CHIPS Act is to “set up and increase home manufacturing of modern semiconductors in the USA” to assist scale back reliance on overseas producers like China, Raimondo stated. “America consumes greater than 25% of the world’s modern chips and produces zero of these chips.”
The White Home did not instantly reply to a request for remark.