(TheLibertyRevolution.com)- The United States government recently passed a law that provides incentives to U.S. manufacturers to increase their production of computer chips.
This week, Vice President Kamala Harris was tasked with seeking out additional partnerships and investments in this area as part of her trip overseas to Japan.
On Wednesday, Harris met with technology executives in Japan to discuss the initiatives. Her morning meetings focused on the focus of the Biden administration on boosting the manufacturing of semiconductor chips within the U.S. borders as well as with some of its strongest allies.
It is being done as part of an effort to expand the overall supply chain for some of the country’s most critical materials, and semiconductors rank right near the top of that list.
During the height of the COVID-19 pandemic, a major vulnerability was revealed when computer chips were extremely hard to come by due problems with the global supply chain. Many of those problems still exist today, and it has affected various industries, from actual computer sales, to other electronics and cards.
Because of this massive shortage, the price of many goods skyrocketed, and they’ve yet to come down.
During the meeting she held at the U.S. ambassador’s residence in Japan, Harris said to those in attendance:
“The citizens and the people of our countries rely on products without even knowing sometimes how reliant those products are on semiconductor chips.”
China is ramping up production of computer chips in its country, and is investing loads of money to do so. In response, the U.S. wants to increase domestic production of semiconductors and also strengthen the positive technology relationships it has with countries such as Japan, Taiwan and South Korea.
Harris added that American understands the reality that “no one country can satisfy the globe’s demand [for semiconductors] … It is important that we and our allies partner and coordinate in a way that allows us to grow and in a way that allows us to function at a very practical level.”
The CHIPS and Science Act that President Joe Biden signed recently will provide $52 billion in incentives and grants for companies to produce more semiconductors. In addition, they can receive a tax credit of 25% if they make investments into facilities based in America.
Research programs will also be given financial support of roughly $200 billion, which will be divvied up over the next 10 years.
Harris said that this bill was “a down payment on future American leadership.” At the same time, she emphasized that “we see Japan as playing a very important and critical role.”
Japan is similarly concerned about its future role in semiconductor production. It was once a leader in the world in this department, but has fallen behind considerably in recent years.
The country has a fund of its own set up to boost semiconductor production, with $3.3 billion going to subsidize a new factory being built in Kumamoto.