During President Biden’s first year in office, the Biden-Harris Administration implemented an industrial strategy to revitalize domestic manufacturing, create good American jobs, strengthen the American supply chain, and increase future industrial growth. These policies have led to a historic recovery in manufacturing, adding 642,000 manufacturing jobs by 2021. Companies are reinvesting in America, bringing good-paying manufacturing jobs back home. Construction of new factories increased by 116 percent compared to last year.
Today, President Biden will sign into law the exciting CHIPS and Science Act of 2022, which will build on this progress, making historic investments that will benefit American workers, communities, and citizens. market to win the race of the 21st century. It will strengthen America’s manufacturing, supply chain, and national security, and invest in research and development, science and technology, and the workforce of the future to keep America a leader in tomorrow’s industries, including nanotechnology, clean energy, large quantities. computer, and artificial intelligence. The CHIPs and Science Act makes smart investments so Americans can compete and succeed in the future.
Bolstered by the passage of the CHIPS and Science Act of 2022, this week, companies announced nearly $50 billion in additional investment in the U.S. manufacturing industry, bringing total business investment to nearly $ 150 billion since President Biden took office:
The CHIPS and Science Act will boost U.S. semiconductor research, development, and production, ensuring U.S. leadership in the technology that underpins everything from cars to home appliances to defense systems. America invented semiconductors, but today it produces about 10 percent of the world’s supply — and none of the most advanced chips. Instead, we rely on East Asia for 75 percent of the world’s production. The CHIPS and Science Act will unlock hundreds of billions more in semiconductor investment across the country, including production critical to national security and critical sectors.
Also, the law will ensure that the United States continues its progress in the field of science and technology. In the mid-1960s, at the height of the race to the moon, the federal government spent 2 percent of GDP on research and development. By 2020, that number will drop to less than 1 percent. Economic growth and prosperity over the past 40 years has concentrated in some coastal areas, leaving many communities behind. The CHIPS and Science Act will ensure progress is made across America, opening science and technology opportunities to those historically left behind.
The Biden-Harris administration has already taken action to ensure appropriate, responsible deployment of CHIPS funding and the Science Act:
The bill requires recipients to demonstrate significant workforce and community investment, including opportunities for small businesses and disadvantaged communities, ensuring semiconductor incentives support economic growth and carry on.
Also, these funds come with strict security measures, to ensure that the recipients of the funds do not build other facilities in China and other affected countries, and to prevent companies from using taxpayers’ money to buy stocks and shares. It will also support well-paying, union-building projects by requiring Davis-Bacon wage rates for facilities built with CHIPS grants.
The CHIPS and Science Act will establish a technology, innovation, and management partnership at the National Science Foundation (NSF) to focus on areas such as semiconductors and advanced computing, advanced communications technology, and advanced energy technology. future, digital information technology, and manufacturing technology. It will encourage business research and technology, ensuring that what is invented in America is made in America. The Act will also reauthorize and expand critical and useful research at the Department of Energy’s Office of Science and the National Institute of Science and Technology to sustain America’s leadership in science and engineering as America’s innovative engineer.
These institutions will create jobs, spur regional economic growth, and position communities across the country to take the lead in high-paying areas such as information technology. , advanced manufacturing, and clean energy technology. It also authorized a $1 billion RECOMPETE pilot program in the Department of Commerce’s Economic Development Agency (EDA) to address economic challenges and support long-term economic growth and development. jobs in most distressed communities.
