Biden Announces Preliminary Agreement on CHIPS and Science Act

By Stacy M. Brown,NNPA Newswire Senior National Correspondent@StacyBrownMedia

      President Joe Biden on Monday, Dec. 11, announced the first preliminary agreement under the CHIPS and Science Act to bolster America’s semiconductor industry and strengthen national security. The groundbreaking deal, aimed at revitalizing U.S. leadership in semiconductors, already has spurred over $230 billion in planned investments in the sector since its inception.

The United States, credited with inventing semiconductors —the tiny chips that power an array of devices from smartphones to sophisticated weapons systems— has seen its global market share dwindle from nearly 40% to just over 10%. The Biden administration warned that the decline poses a significant threat to national security and leaves the nation vulnerable to disruptions in the global supply chain.

“My CHIPS and Science Act aimed to change that, and already, we are revitalizing America’s leadership in semiconductors, strengthening our supply chains, protecting national security, and advancing American competitiveness as a result of the law and our ‘Investing in America; agenda,” Biden stated.

“Since I took office, companies have announced over $230 billion in planned investments in semiconductors and electronics,” he said.

Under the CHIPS and Science Act, the Department of Commerce’s latest move involves a preliminary agreement with BAE Systems, Inc., for a CHIPS incentive award totaling approximately $35 million. Once finalized, the White House said the award will facilitate the modernization of an aging facility in Nashua, New Hampshire, quadrupling its production capacity for crucial chips vital to national security, including those utilized in F-35 fighter jets.

“Today marks a key milestone for our implementation of this historic law,” the President remarked, emphasizing this initiative’s critical role in protecting national security and advancing American competitiveness.

The White House anticipates the BAE Systems, Inc. award to have a twofold impact, advancing national security goals and stimulating local investment and job creation. The modernization of the Nashua facility is expected to enhance its production capabilities, supporting the growing demand for semiconductor technology in various applications, Biden asserted.

“Over the coming year, the Department of Commerce will award billions more to make more semiconductors in America, invest in research and development capabilities to keep America at the forefront of new technologies, strengthen our national security, and create good-paying jobs,” he insisted.