Biden proposes $50 billion to subsidize the US chip industry

US President Joe Biden (Joe Biden) announced a US$2.25 trillion infrastructure construction plan during his speech in Pittsburgh on the afternoon of March 31, including a proposal to invest US$50 billion in the semiconductor industry.

According to the Wall Street Journal and Seeking Alpha, the Biden government proposed to invest US$50 billion to subsidize its domestic chip manufacturing and research, including the establishment of a National Semiconductor Technology Center. To this end, Biden intends to increase the corporate tax rate from the original 21% to 28%, and impose additional taxes on the surplus retained by companies overseas, as a source of funds for the infrastructure construction plan within 15 years.

Biden's plan to fund the semiconductor industry has received broad support from both parties. According to the Wall Street Journal, US lawmakers including the Republican Party believe that my country’s spending on chip manufacturing poses a threat to America’s leading position in advanced chip technology. The U.S. Department of Defense stated that relying on foreign manufacturers constitutes a risk, because most of the critical infrastructure of the United States must rely on microelectronic devices.