US President Joe Biden Tuesday signed the CHIPS Act of 2022, which provides $52 billion to boost the US domestic semiconductor industry.

The act authorizes the expenditure of more than $200 billion to promote domestic semiconductor production. However, only $52 billion is immediately appropriated as a result of Biden signing the bill.

The act also establishes a US Treasury fund to carry out its provisions. It provides $39 billion in manufacturing incentives and $13.2 billion in research and development and workforce development. It also provides a 25% tax credit for investments in domestic semiconductor manufacturing and production.

In response to the signing, US semiconductor companies announced new investments. For example, micron announced a $40 billion investment in memory chip manufacturing. Additionally, Qualcomm and GlobalFoundries announced a partnership that includes $4.2 billion to manufacture chips.

At the signing, Biden stated:

Fundamental change is taking place today — politically, economically, and technologically — change that can either strengthen our sense of control and security, of dignity and pride in our lives, in our nation; or — or change that weakens us so that people are left behind, causing them to question whether or not the very institutions — our economy, our democracy itself — can still deliver for them, for everybody.