US President Joe Biden signs an Executive Order of the CHIPS Act, Model Policy Development Council

US President Joe Biden signed an order to implement the CHIPS Act 2022 on Thursday. The executive order will guarantee subsidies for semiconductor chip production in the US. The US government’s $52.7 billion (nearly Rs 4,21,000) implementation plan aims to encourage domestic chip research and production. The bill is expected to boost US efforts to compete with China’s scientific and technological development.

In an official statement by the White House, President Biden signed an executive order to implement the $52.7 billion CHIPS Act to promote Chips manufactured in the US. The act would provide “an impetus for semiconductor research, development, and production.”

The development comes days after President Biden Signed CHIPS Act earlier this month. The legislation is expected to help address chip shortages that have affected a number of industries including automobiles, home appliances as well as electronics and gaming.

Biden’s order also established a 16-member interagency CHIPS implementation panel, which includes secretaries from the Departments of Defense, State, Commerce, Treasury, Labor and Energy. However, there is still no information on when the US government will start funding semiconductor chips.

Meanwhile, China has condemned the US CHIPS Act. According to Foreign Ministry spokesman Wang Wenbin, the measure will “disrupt international trade and distort the global semiconductor supply chain. China firmly opposes that.”