President Biden Hails Preliminary Agreement for CHIPS and Science Act Implementation

Staff report

Washington

President Joe Biden lauded a significant step forward in the execution of the CHIPS and Science Act, emphasizing the strategic importance of bolstering America’s semiconductor manufacturing capabilities in a statement released on December 11, 2023.

Highlighting the pivotal role of semiconductors in modern technology, President Biden underscored America’s historical contribution to semiconductor innovation and expressed concerns over the nation’s decline in global chip production, plummeting from nearly 40% to just over 10%. He emphasized the detrimental impact on national security and economic vulnerability arising from global supply chain disruptions.

The President credited the CHIPS and Science Act and the broader Investing in America agenda for revitalizing U.S. leadership in semiconductor manufacturing. He revealed that since taking office, companies have disclosed plans amounting to over $230 billion in investments in semiconductors and electronics.

President Biden marked a significant milestone in the Act’s implementation, as the Department of Commerce unveiled its initial preliminary agreement with BAE Systems, Inc. The agreement, estimated at approximately $35 million as a CHIPS incentive award, aims to revamp an aging facility, quadrupling its chip production capacity. The chips manufactured in this facility play a critical role in national security, notably in F-35 fighter jets crafted by American workers in Nashua, New Hampshire. The President highlighted that this award would fortify national security objectives while stimulating local investment and job creation.

Asserting this announcement as the first in a series of transformative steps, President Biden outlined the Department of Commerce’s forthcoming initiatives. Over the upcoming year, the department is slated to grant billions more to augment domestic semiconductor production, infuse investments in research and development, fortify national security measures, and generate well-paying jobs.

The preliminary agreement with BAE Systems, Inc. reflects a commitment to revitalize domestic semiconductor production, a key pillar in President Biden’s efforts to strengthen national security, enhance supply chain resilience, and invigorate the economy.

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