President Biden's recent infrastructure proposal has become a hot topic in America. As it includes the Aid of $50 billion to U.S. Chip Makers. Biden's proposal for $50 billion for the semiconductor industry in America can help Chip makers to compete with Chinese technology. As American Chips are fulfilling the shortage of Chips and the industry is doing well in the market. But because of the fear that Chinese technology might overtake their technology, biden 50b nsf rdbirnbaumprotocol proposed the Aid of $50 billion to the semiconductor industry.
After this proposal was introduced by Bided on Wednesday, it still needs to leverage bipartisan support on Capitol Hill for chip researching and subsidizing domestic manufacturing. According to the information, the whole amount of the Aid will go to the research, design, and production incentives. And it is also said that this $50 billion Aid includes the building up of the National Semiconductor Technology Center.
In Pittsburgh, biden 2t 50b nsf rdbirnbaumprotocol infrastructure plan in his late afternoon speech. This plan will result in a change in the rate of tax, the corporate tax rate will be 21% which is currently 28%, and also an increment in the taxes of foreign earnings.
After the late afternoon speech of president Biden, he got massive bipartisan support for providing aid to the US Chip Makers. The Republican Lawmakers said that it is important to aid the US semiconductor industry as China is spending a lot on building its own Chip Making technology. And it is a big threat to the US Chip Makers which is a leading advanced Chip technology.
Many were in favor of the biden 2t 50b rdbirnbaumprotocol proposals. However, some conservatives were not very happy with the decision. Jessica Anderson, executive director of Heritage Action, was of the opinion that the American Semiconductor industry is currently a strong industry that does not require tens of billions of dollars.
According to Cesar Ybarra, senior director of legislative affairs of FreedomWorks, US leadership in semiconductors is however a laudable goal, but it should be funded by the private enterprise and not by the American Taxpayer.
In this context, the department of defense presented its opinion. According to them, dependence on foreign manufacturing poses risks. And this is because much of critical infrastructure depends on microelectronic technology.
And it is a serious threat because Artificial Intelligence (AI) and other emerging technologies seek more advanced components.
AL Thompson, Intel Corp.'s vice president of US govt. relations gave his written statement which said that if America needs to remain prosperous and competitive in the market, the expenditure on the digital and physical infrastructure and semiconductor industry should be linked closely.
Some were of the opinion that taking initiative in this concept can help America regain some of its ground in the semiconductor industry that it lost to other countries like China, Japan, Taiwan, and South Korea.
According to the information provided by the Semiconductor Industry Association, the US share of global semiconductor manufacturing has fallen from 37% in 1990 to 12% today.
John Neuffer, SIA president, gave his written statement in the favor of President Biden's proposal. He said that Semiconductors are the foundation of America's economy, critical infrastructure, national security, and job creation.
The White House promoted president biden 2t nsf 50b rdbirnbaumprotocol infrastructure proposal and cited the Chip Act. With that legislation, the investment tax credit is not included.
Pat Gelsinger, Intel's new chief executive introduced a detailed plan for the US Chip Making industry. And the plan includes a roughly $20 billion investment commitment. The investment will be for two new Arizona plants and efforts which will be later expanded into in-house making. This plan of production will be started in the year 2024.