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JAKARTA - US President Joe Biden on Thursday, August 25, signed an executive order on implementing a USD 52.7 billion (IDR 781 quadrillion) semiconductor chip manufacturing subsidy and research law.

Earlier this month, Biden signed a bill to step up efforts that would make the United States more competitive with science and technology endeavors than China. It does this by subsidizing US chip manufacturing and expanding research funding.

The legislation also aims to alleviate a persistent chip shortage that has affected everything from cars and guns to washing machines and video games.

The Chips and Science Act also includes investment tax credits for chip manufacturers estimated to be worth $24 billion.

The White House said the Commerce Department launched CHIPS.gov. The department will make a funding award for chip production.

Commerce Secretary Gina Raimondo said the department had also been preparing for the program for months.

"We are committed to a transparent and fair process," Raimondo said. "We will move as quickly as possible to deploy these funds, while ensuring the time required to conduct due diligence."

Biden's order sets out six key priorities to guide implementation and establishes a 16-member inter-agency CHIPS implementation board that will be co-chaired by Director of National Economy Brian Deese, National Security Adviser Jake Sullivan, and Acting Director of Science and Technology Policy Alondra Nelson. The board will include the secretaries of Defence, State, Commerce, Finance, Labor and Energy.

It remains unclear when Commerce will formally provide semiconductor chip funding for prospective applications or how long it will take to create an award.

The White House said the chip program "will include rigorous application review along with strong compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely."

Progressives argued the bill was a gift to profitable chip companies that previously closed US factories, but Biden argued earlier "this law does not hand out blank checks to companies."


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