President Joe Biden signed into law the CHIPS and Science Act on Tuesday, August 9. The act will allocate billions in funding to US semiconductor research and manufacturing, according to the White House.

“The future of the microchip industry is going to be made in America,” Biden said at the White House press conference.

The CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act passed both houses of Congress last month with bipartisan support. It is part of Biden’s plan to bolster the US economy while also leveling out the manufacturing playing field with China, the White House said in a statement.

The Semiconductor Industry Association said, “The share of modern semiconductor manufacturing capacity located in the U.S. has eroded from 37% in 1990 to 12% today, mostly because other countries’ governments have invested ambitiously in chip manufacturing incentives and the U.S. government has not,” and called the passage a “big win for our country.” Credit: The White House via Storyful