On Wednesday, March 9, 2022, U.S. President Joe Biden urged Congress to enact a final, compromise version of massive legislation to strengthen the U.S.’s competitiveness against China. It would also include a 52 billion dollar fund to subsidize the production of semiconductor chips.

Biden said, “This bipartisan innovation bill will allow us to stamp more products ‘Made in America’. It’s going to bolster our national security and our economic security.”

In January, Biden praised Intel Corp. for building a 20-billion-dollar semiconductor complex to the west of Columbus, Ohio.

Strengthening the U.S. semiconductor competitiveness receives strong support from executive and legislative branches to secure the U.S. dominant chip production position against China.

Last month, a group of governors led by Michigan Governor Gretchman Whitmor wrote a letter to urge Congress to move swiftly to fully fund the CHIPS Act to protect and create thousands of jobs and attract investment to states, saying, “Now is the time for a comprehensive solution to this national security and economic crisis.”

Both chambers of the U.S. Congress have passed their version of the legislation.
In June last year, the Senate voted 68-32 to pass “the U.S. Innovation and Competition Act,” including 52 billion dollars for chip manufacturing.

On February 4, 2022, the United States House of Representatives passed a bill to increase American competitiveness with China and allocate 52 billion dollars to enhance semiconductor production in the United States.

Along with funding measures for the technology sector, the U.S government also has taken a firm stance on China in this field.

According to the South China Morning Post, in December 2021, the U.S. barred China’s buyout fund, Wise Road Capital, from a 1.4 billion dollar takeover of a South Korean chipmaker.

Reuters reported in September 2020; the U.S. had placed export restrictions on Semiconductor Manufacturing International Corporation (SMIC), China’s largest manufacturer of semiconductors, citing military risk.

In 2019, China’s tech giant, Huawei, was barred from doing business with U.S. companies. And in November 2021, the U.S. Department of Commerce put 12 Chinese technology companies on a blacklist.

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