PRESIDENT JOE BIDEN ON MARCH 9, 2022. AP.
Companies have announced plans to invest $204B in U.S. manufacturing projects since Congress passed the Inflation Reduction Act and the Chips and Science Act.
Investments in clean tech and semiconductor manufacturing are almost 20 times larger than they were in 2019, reports the Financial Times.
- The Inflation Reduction Act (IRA) and the Chips and Science Act were signed into law in August.
- The IRA provides $369B in tax credits for clean technology.
- The Chips and Science Act earmarked $39B to boost U.S. semiconductor manufacturing and provides a further $24B in manufacturing tax credits.
- Foreign companies — mostly from Taiwan, South Korea, and Japan — account for a third of the new investments.
- Congress passed the IRA and the Chips Act in a bid to reduce U.S. dependence on Chinese supply chains.
- The subsidies have been criticized for excluding the industries of U.S. allies in Europe and Asia.
- In October 2022, the Biden administration rolled out sweeping sanctions to prevent China from accessing advanced semiconductor technology.
