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Biden to sign bill boosting China competition and U.S. chip production

President Joe Biden is set to sign into law a bipartisan bill to invest billions of dollars in domestic semiconductor manufacturing and science research, with the aim of boosting U.S. competitiveness with China and other foreign rivals.

The legislation marks a win for Biden, who campaigned on reaching across the aisle and has pushed Congress to pass the legislation as a matter of necessity for America’s economy and national security.

Biden, who is suffering from a relapse of Covid, appeared virtually at a ceremony Tuesday with Gov. Gretchen Whitmer, D-Mich., as she signed an executive directive to implement the Chips and Science Act.

The bill, dubbed the Chips and Science Act, includes more than $52 billion for U.S. companies producing computer chips, as well as billions more in tax credits to encourage investment in chip manufacturing. It also provides tens of billions of dollars to fund scientific research and development, and to spur the innovation and development of other U.S. technologies.

The House and Senate passed the bill last week with near-unanimous Democratic support. One-third of Republican senators backed the bill, including Senate Minority Leader Mitch McConnell of Kentucky. Two dozen House Republicans also voted for it, though others withdrew their support on the eve of the final vote after Senate Democrats unveiled plans to quickly pass an unrelated partisan reconciliation bill.

Democrats want that tax-and-spending package, helmed by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., to come to a vote before Congress leaves Washington, D.C., for the August recess. They hope to pass it without needing Republican votes in the Senate, where the parties are split 50-50 and Vice President Kamala Harris holds the tie-breaking vote.

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