United States tech companies that receive federal funding from the Biden administration’s CHIPS and Science Act will be barred from building “advanced technology facilities” in China for 10 years, according to U.S. Commerce Secretary Gina Raimondo, who spoke during a White House press conference on Tuesday.
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“Companies who receive CHIP funds can’t build leading-edge or advanced technology facilities in China for a period of 10 years. Companies who receive the money can only expand their mature node factories in China to serve the Chinese market. So there — this is what we know,” Raimondo said.
Last month, President Joe Biden signed into law the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, which allocates $280 billion to high-tech manufacturing and scientific research.
“You know, the CHIPS and Science Act supercharges our efforts to make semiconductors here in America … those tiny computer chips smaller than a fingertip that are the building blocks for our modern economy, powering everything from smartphones, to dishwashers, to automobiles,” Biden said of the legislation.
“Unfortunately, we produce zero percent of these advanced chips now. And China is trying to move way ahead of us in manufacturing these sophisticated chips as well,” Biden continued. “It’s no wonder the Chinese Communist Party actively lobbied U.S. business against this bill.”
“The United States must lead the world in the production of these advanced chips. This law will do exactly that,” he added.
In January, Republican Florida Gov. Ron DeSantis announced the Florida Job Growth Grant Fund invested nearly $10 million in grants to Osceola County and Valencia College to support semiconductor and other advanced tech manufacturing to help protect the supply of computer parts from being controlled by China.
“The Chinese Communist Party steals America’s technology and is a threat to the semiconductor supply chain. I am investing funds to increase microchip and semiconductor manufacturing in Florida so that the CCP cannot hold our supply chain hostage,” DeSantis tweeted.
