Microchip America, Biden’s move: “Relief for those who produce it in the United States” – Economy

ROME, August 10, 2022 – When Intel asked Joe Biden to take over an abandoned factory in Chengdu, China, a year ago, to promote microchip development, Pat’s phone also rang in the White House. In the end, realizing that the air at 1600 Pennsylvania Avenue was really bad and it was better to abandon the plan to expand to the east, the American high-tech giant, trying with this step to get out of the tunnel of the semiconductor crisis, the Oval Office immediately set to work on A reform could once again attract integrated circuit manufacturers to the United States. Results? The Chip Act Biden Signed Tuesday: A massive $280 billion injection of research and development funding into the semiconductor market. Nearly one-fifth of the resources allocated (52 billion) to the tax credit will be allocated to chip makers who will start (or expand) activities in the United States. The reform then unleashed a trap against China, whose economic and technological ambitions frighten the United States (not a bit). Companies that want access to US funding, in fact, won’t be able to make investments in China or “other countries we have concerns about” for at least a decade, unless they are legacy segments intended for the domestic market. A move that Beijing did not like. “The Chip Act is another example of American economic coercion,” was shocked Wang Wenbin, a spokesperson for the Chinese Foreign Ministry. Although truth be told, the United States is the latest addition to the re-slicing race: South Korea, Japan, the European Union and other countries have long agreed to plans equivalent to the American plan to persuade producers to…