The Commerce Department of US has recently announced that to counter the China in a bid the USA government is investing $50 bn in chip production. This is the biggest investment of the US government in the last 10 years in technology.
The New York Times reported this on Tuesday that Biden administration and committee has planned to beat china in technology they are going to invest $50 bn in domestic chips companies.
Moreover, as per report of Bloomberg Biden administration has restricted the investment in Chinese technology companies. This could be the impact of the controversy on the Taiwan between these two technology giants. That is why Biden administration has turned to their local chips production companies and also investing $50.
Moreover the announcement took almost a month after the Biden signed the CHIPS and Science Act.
However the announcement said that this amount of $50 bn investment will re-energize the domestic industry of Chips and will also create jobs of “good pay” across the country.
Moreover, the Commerce Department also told the NYT that this fund from the Biden Administration will be used by the Chips production companies for testing, assembling, and packaging chips.
In addition to this the Department also mentioned that the administration wants to pay out this in the form of grants and loans. So the company will start accepting application from February but the funds and loans will be given on rolling basis. The department will start providing funds in the next spring.
So this means that Biden administration wants to hinder the Chinese technological development by investing $50 bn in chips production.
Anyhow the whole amount will not be given to one category. As $10 billion will go to build super-conductors while $11 bn of the fund will go for the research and development.
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