--- title: "Biden Signs CHIPS Bill to Boost US Microchip Makers, Jumpstart Car Production" description: "The new law will boost domestic microchip production with an aim to curb the long-lasting drought that the global chip shortage has created for automakers." date: "2022-08-09" modified: "2022-08-09" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/biden-signs-chips-bill-to-boost-us-microchip-makers-jumpstart-car-production" categories: - "Car Tech" - "Manufacturing" - "News" --- # Biden Signs CHIPS Bill to Boost US Microchip Makers, Jumpstart Car Production ![]() *\Chevrolet\* President Joe Biden signed the CHIPS and Science Act on Tuesday to provide $52.7 billion in funding for the research and development of [semiconductors]() in the U.S. The purpose of the bill is to jumpstart domestic manufacturing of microchips, raise the United States' global market share of semiconductor production, and ease supply lines crunched by a global shortage of the chips. The largely bipartisan bill was signed into law on the White House lawn, with CEOs of major U.S. manufacturing companies in attendance. While the auto industry will get quite a boost, this bill should impact every facet of semiconductor manufacturing in the U.S. Biden called it "a once-in-a-generation investment in America itself." Of that $52.7 billion, $39 billion will incentivize manufacturers to produce semiconductors in the U.S., along with a 25% tax incentive for companies that invest in semiconductor production. That raised some eyebrows from critics, who said the bill was giving corporate handouts to massive companies, instead of boosting the economy. Biden dismissed that notion during the signing of the bill. ![]() *Washington DC—August, 9: President Joe Biden signs the CHIPS Act | Photo by Chip Somodevilla/Getty Images)* “Let me be clear: This bill is not about handing out a blank check to companies. Commerce Secretary Raimondo will be overseeing the key investments of this bill, explaining how she’s laser-focused on the guardrails that will protect taxpayers’ dollars and the interests of the American workers, small businesses, and the communities in which they reside.” Biden said. Car customers will hope that the bill alleviates the supply chain shortage issues that have plagued the industry for years. There are currently tens of thousands of North American-made cars and trucks sitting in lots awaiting microchips. The new CHIPS act may be good news for the auto industry by providing some much-needed relief in the supply chains for microchips and semiconductors. The U.S. currently has 2% of the market share in semiconductor manufacturing. Most semiconductor production is done in China and Taiwan and this bill aims to increase the U.S. market share to 10%. “The United States has to lead the world in the production of these chips for our own safety’s sake, as well as our economic growth.” Biden said. ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()