As Ford has been forming partnerships with chipmakers amid a two-plus year-long shortage that has severely hampered production, the U.S. government has also been working on what’s known as the CHIPS Act, which aims to improve the flow of semiconductor chips and increase domestic production. Ford CEO Jim Farley recently co-hosted a summit consisting of senior government officials and other industry executives ahead of the signing of the CHIPS Act, which happened this morning. Now, Farley has heaped significant praise on this new piece of legislation as well.
Thank you to the leaders who made the #CHIPSAct a reality to strengthen American supply chains, especially for legacy chips needed in auto & defense. This bipartisan law will help @Ford and the U.S. innovate, create jobs, build EVs customers love & compete on the global stage. https://t.co/qe7a3kXtMY
— Jim Farley (@jimfarley98) August 9, 2022
“Thank you to the leaders who made the CHIPS Act a reality to strengthen American supply chains, especially for legacy chips needed in auto and defense, Farley said via Twitter. “This bipartisan law will help Ford and the U.S. innovate, create jobs, build EVs customers love, and compete on the global stage.”
Officially called the CHIPS and Science Act of 2022, this new bill provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development, with $39 billion going to manufacturing incentives, $2 billion for chips used in automobiles and defense systems, $13.2 billion in research and and workforce development, and $500 million to provide for international information communications technology security and semiconductor supply chain activities.
Additionally, the CHIPS Act also provides a 25 percent investment tax credit for capital expenses for manufacturing of semiconductors and related equipment, $1.5 billion for promoting and deploying wireless technologies that use open and interoperable radio access networks, $10 billion to invest in regional innovation and technology hubs across the country, as well as various other science-related investments.