*United States President Joe Biden declares the American country will ‘never have to rely on foreign chip production again’ as the new Chips Act 2022 with nearly $280billion package is expected to boost semiconductor chip production, and help to reduce the cost of consumer goods, including cars, electrical appliances and computers, among others

Gbenga Kayode | ConsumerConnect

Amid the continued global shortage of the important product, the computer chip shortage the United States (US) has suffered under for over a year is finally getting addressed by the authorities, and more so in a big way this time.

After the country’s Senate passed the Chips Act of 2022 last Wednesday, the US House of Representatives followed suit Thursday, and sent the legislation to President Biden for his signature.

ConsumerConnect learnt the new bill seeks to boost semiconductor chip production, especially within the US, and it will help to lower the cost of consumer goods, such as cars, appliances, and computers, among others.

‘Chips for Amercia’ concept   Photo: Wealth for Geeks

As part of the implications, consumers should also start seeing new high-paying manufacturing jobs popping up across the country, agency report said.

They’ll be spurred by $52.7 billion in subsidies and a 25 percent tax credit that will go towards US computer chip manufacturing.

What American economy needs −Presidency

Analysts have opined that the timing of about $280 billion package couldn’t be better than now. ​​

Earlier this year, they had said that the chip shortage would keep car prices high and inventories low, and they also projected that the uncertain conditions could drag on until 2023 or much longer.

Interestingly, when the bill moved to Biden’s desk for his signature in the White House, in Washinton, the President hailed the effort as “exactly what we need to be doing to grow our economy right now,” report noted.

Biden also stated: “By making more semiconductors in the United States, this bill will increase domestic manufacturing and lower costs for families.

“And, it will strengthen our national security by making us less-dependent on foreign sources of semiconductors.”

In his remarks on the Chips Act 2022, Sen. Maria Cantwell (D-WA), architect of the legislation in the US Senate, said: “We don’t know exactly what innovations will come out of this, but we do know this: America will be more competitive because of it.

“And we do know this, that we will be able to grow our economy for the future, because of the investments that we’ve made….”

Importance of the new legislation

Asider from other socio-economic benefits for consumers, it is noted that there are “many mouths that will get fed by the Chips Act, from agencies like NASA to manufacturers and even educators.

However, the $52.7 billion in subsidies and the 25 percent tax credit that will go toward US computer chip manufacturing will likely be where consumers see the biggest impact.

Zachary Collier, at Radford University, told ConsumerAffairs that “nearly everything runs on chips.

“The passage of the Chips Act will incentivise businesses to invest in domestic research and manufacturing capabilities, easing supply chain shortages, reducing lead times for products, and increasing manufacturing and high-tech sector jobs.”