The White House announced that U.S. President Joe Biden is scheduled to sign a proposal including a chip bill next Tuesday (9th) to complete the legislation, symbolizing the victory of the Biden administration’s efforts for more than a year. Driven by the chip bill, supply chain players are planning to expand U.S. investment, the latest example being Japan’s Mitsubishi Gas Chemical, a semiconductor materials maker.
The House of Representatives passed the $280 billion “Chip and Science Act” last week after lengthy negotiations between the Senate and the House of Representatives, aimed at boosting U.S. semiconductor manufacturing and scientific innovation in a bid to counteract hostile nations such as China. The bill includes an allocation of $52 billion to encourage the production of semiconductors in the United States, as well as $24 billion in tax incentives for chip factory investment.
“This bill will strengthen our efforts for the U.S. semiconductor industry,” Biden said on Tuesday (3rd).
Michigan Gov. Gretchen Whimer signed an executive order Tuesday to enforce the Chip and Science Act, but Biden attended the ceremony only online after he tested positive again after being released from quarantine last week.
Semiconductor Supply Chain Invests in the U.S.
Major manufacturers such as Intel, TSMC, Universal Crystal and GlobalFoundries have previously announced that as long as the bill is passed, they plan to build a fab in the United States, and Samsung Electronics is also planning to expand its fab in Texas.
Not only semiconductor manufacturers, but also some semiconductor material manufacturers are also preparing to expand production capacity in the United States. For example, Showa Denko, a major Japanese chemical company, and SK Group, a South Korean industrial giant, have previously reported that they are planning to expand production of special gases. Japan’s Mitsubishi Gas Chemical Company is also considering follow up.
Nikkei Asia reported that Mitsubishi Gas Chemical expects to increase demand and will invest 50 billion yuan in the next decadeJapanese Yen ($372 million) Expansion of production capacity of “Ultra-Pure Hydrogen Peroxide,” a raw material for semiconductor cleaning fluids, to nearly triple the current level. The existing plant in Oregon will set up new production lines, and plans to set up new plants in the future.