US President Joe Biden Signs Order for Implementation of CHIPS Act, Forms Council for Policy Development

US President Joe Biden signed an order to implement the 2022 CHIPS Act on Thursday. The executive order will ensure subsidy for manufacturing semiconductor chips in the US. The US government's implementation plan worth $52.7 billion (nearly Rs. 4,21,000 crore) aims at encouraging chip manufacturing and research in the country. The bill is expected to boost the US's competitive efforts against China's science and technological developments.

In an official 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 come days after President Biden signed the CHIPS Act earlier this month. The law is expected to help in solving the chip shortage that has affected several industries including automobiles, home appliances as well as electronic and gaming devices.

Biden's order has also formed a 16-member interagency CHIPS implementation council, which will include the secretaries of Defense, State, Commerce, Treasury, Labor and Energy. However, there is no information yet on the timeline when the US government will start providing semiconductor chips funding.

Meanwhile, China has condemned the US CHIPS Act. According to Foreign Ministry spokesperson, Wang Wenbin, the measure will “disrupt international trade and distort global semiconductor supply chains. China firmly opposes that.”