World News:
China has reacted to President Biden officially signing the CHIPS act into law after actively lobbying against the law.
In a statement, The Chinese Embassy in Washington DC said they "firmly opposed the CHIPS Act" and was "reminiscent of a cold war mentality." They added that the new law would disrupt international trade and the global supply chain. The country is also vowing to implement countermeasures that will minimize the impact on Chinese companies.
President Biden, Republicans, Democrats, and Pentagon officials have previously called for the United States to curb its reliance on foreign nations for semiconductors and critical chips used in cell phones, computers, vehicles, appliances, and other items.
Here's what the $280 billion CHIPS Act provides:
• $52.7 billion for chip manufacturing, research and production, including $2 billion for legacy chip production — those essential to the auto industry and the military.
• 25% tax credit for investments in semiconductor manufacturing, worth about $24 billion.
• $1.5 billion for the development of open-architecture, software-based wireless technologies, known as ORAN, that's meant to reduce reliance on foreign telecommunications equipment.
• $11 billion for the Department of Commerce to create 20 "regional technology hubs" focused on technology development and manufacturing.
• $200 billion authorized for scientific research.
China has reacted to President Biden officially signing the CHIPS act into law after actively lobbying against the law.
In a statement, The Chinese Embassy in Washington DC said they "firmly opposed the CHIPS Act" and was "reminiscent of a cold war mentality." They added that the new law would disrupt international trade and the global supply chain. The country is also vowing to implement countermeasures that will minimize the impact on Chinese companies.
President Biden, Republicans, Democrats, and Pentagon officials have previously called for the United States to curb its reliance on foreign nations for semiconductors and critical chips used in cell phones, computers, vehicles, appliances, and other items.
Here's what the $280 billion CHIPS Act provides:
• $52.7 billion for chip manufacturing, research and production, including $2 billion for legacy chip production — those essential to the auto industry and the military.
• 25% tax credit for investments in semiconductor manufacturing, worth about $24 billion.
• $1.5 billion for the development of open-architecture, software-based wireless technologies, known as ORAN, that's meant to reduce reliance on foreign telecommunications equipment.
• $11 billion for the Department of Commerce to create 20 "regional technology hubs" focused on technology development and manufacturing.
• $200 billion authorized for scientific research.
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