US to Invest $280-Billion in High Tech to Compete with China

Joe Biden, president of the United States has signed a law committing 280 billion dollars to the scientific research and high tech manufacturing amid fears regarding the US is losing its technological edge to China.

The investments will now include tax breaks for the companies that produces computer chip manufacturing plants in the United States. The business groups have long pushed for more support from the government, citing the need to decrease its reliance on China. A shortage of microchips across the globe has increased the urgency of their calls.

Chuck Schumer, a top Senate Democrat, said that the bill is a game changer that will ensure prosperity and leadership of the United States in the next century. He said that the authoritarians had been cheering for them to lose, and are hoping that they sit on their hands. He also said by enacting the CHIPS and Science Act, they are making it clear that they believe another great century of the United States lies on the horizon.

Currently, the United States produces around 10 percent of the global supply of semiconductors, which are very important for the product starting from cars to mobile phones. The United States is not alone in its investments in the industry.

The European Union also said, it will commit over 40 billion euros to boost the production of computer chips, while China is also boosting its investment in science and technology.