President Joe Biden will sign legislation on Tuesday to subsidize the US semiconductor industry and boost efforts to make the US more competitive with China. Subsidies for chip manufacturing and research total $52 billion under the bill. It also includes a $24 billion investment tax credit for chip manufacturing plants. GlobalFoundries CEO Thomas Caulfield said in a statement the chips legislation “protects U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil.” The legislation is intended to alleviate a persistent shortage that has affected the supply of goods ranging from automobiles and weapons to washing machines and video games. As the chip shortage continues to impact automakers, thousands of cars and trucks remain parked in southeast Michigan. Ford CEO Jim Farley said in a statement “a reliable domestic supply of chips, including legacy semiconductors needed in the automotive and defense industries, will keep American manufacturing lines humming.”
