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Biden continues push for subsidized chip production

President Joe Biden visited IBM Corp’s new plant in New York to inspect the facilities and to support his administration’s efforts to subsidize U.S. semiconductor chip production and create jobs in the industry.

During his visit, Biden praised IBM’s plans to invest $20 billion in semiconductors, mainframe technology, artificial intelligence and quantum computing in the Hudson Valley region of New York.

“Where is it written that we can’t lead manufacturing in the world? The supply chain is going to start here and end here, in the United States,” Biden said.

Biden, whose administration has allocated billions of dollars in federal funds to boost private sector spending and job creation, said government funding is crucial to boosting production and ensuring U.S. national security by producing critical goods that are now made abroad.

Since signing the Chips and Science Act in August, which allocated $52 billion to subsidize semiconductor chip production and research, Biden’s administration has made a number of investments possible, including IBM.

Heavy subsidies for private companies are necessary because China and the European Union have provided billions in incentives for chip companies, the White House said.

Biden also visited Intel Corp’s planned $20 billion semiconductor manufacturing facility, another beneficiary of the CHIPS Act and Science Bill.

IBM has also said that the site will be a global hub for the development of quantum computers.

The sources for this piece include an article in Reuters.

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