CHIPS Act rollout: Biden signs executive order kick-starting implementation of sweeping US chip manufacturing law

Biden signed the order only two weeks after the signing of the law known as the CHIPS and Science Act. It’s a decision that reflects an urgency — and an understanding of the substantial task ahead — for senior administration officials as they continue to face the acute risk posed by critical semi-industry concentration. -drivers.

The executive order “demonstrates that we are swiftly executing the president’s vision for a 21st century American industrial strategy,” National Economic Council Director Brian Deese said in a statement. “The CHIPS Act will secure critical supply chains for American manufacturers and strengthen vulnerabilities to reduce costs for families and strengthen our national and economic security.”

The law marked a dramatic bipartisan effort to pump tens of billions of dollars into manufacturing, research and development, and science — all areas where the United States has fallen behind some global competitors in investment. Federal in recent years. American competition with Chinaand its rapid economic and military rise, was seen as a central and often driving force during the legislative process.

The executive order will establish a 16-member implementation steering council made up of cabinet secretaries and senior White House officials from all of Biden’s national security and economic teams. The council will be co-chaired by Deese, National Security Advisor Jake Sullivan and Alondra Nelson, acting director of the White House Office of Science and Technology Policy.

The order will also detail Biden’s six priorities for the implementation process in the coming months, which include a series of critical factors designed to guide the speed, oversight and relationships with the private sector for more than $52 billion. dollars in new funding to boost domestic chip manufacturing to create long-term economic and national security.

“We will move as quickly as possible to deploy these funds, while ensuring adequate time to complete due diligence,” said Commerce Secretary Gina Raimondo, a key player in passing the law and a member of the new board of management, in a press release. “This program is intended to be an investment in the long-term economic and national security of the United States, and we will take the necessary steps to ensure its success.”

Other priorities Biden has put in place will include a thorough review and compliance of how funds are used and a focus on attracting significant private capital as part of a more sustainable, long-term effort. The act’s regional manufacturing hubs and innovation hubs and emphasis on including a wide range of stakeholders are the other key elements.

The Commerce Department has also launched a website, CHIPS.gov, which will serve as a central hub for implementation resources, including funding opportunities and timelines.

“We are committed to a transparent and fair process, and CHIPS.gov will be a critical channel through which we communicate with the public about CHIPS program initiatives,” Raimondo said.

Raimondo said his agency had been preparing “for months” as Congress reached a final agreement on what implementation would entail.

Biden signed the law amid a flurry of potentially transformative legislative successes over the past month, which ultimately included reaching agreement on a $700 billion economic and climate package White House officials had lobbied since the first months of his presidency.

But throughout, growing concern about vulnerabilities created by a lack of domestic semiconductor manufacturing capacity has been a animating — and increasingly pressing — issue inside the West Wing.

In the days leading up to Bill’s Capitol Hill breakthrough, officials repeatedly cited China’s efforts to increase domestic production of critical components of everything from cars and washing machines to military weapons systems. criticism, as an important cause for alarm.

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