During a Wednesday meeting with Japanese technology executives, Vice President Kamala Harris said the administration sought new investments and partnerships. It was in the light of a new law that increased U.S. support for computer chip manufacturing. She attended a morning meeting reflecting the administration’s efforts to boost semiconductor manufacturing and expand critical materials supply chains.
On Wednesday, Vice President Kamala Harris met with Japanese technology executives to announce that the administration is seeking new investments and partnerships because of a new law that will boost United States support for computer chip manufacturing companies.#KamalaHarris pic.twitter.com/z8gYcT1doj
— Live News Now (@LiveNewsNow6) September 28, 2022
A shortage of computer chips during the Coronavirus pandemic contributed to increased costs and delays in the assembly of vehicles and other products, exposing the economy’s vulnerability to disruptions in the supply of computer chips. “Many Americans and citizens of other nations are dependent on products that rely on semiconductor chips without realizing it,” Harris said during the meeting at the residence of the U.S. ambassador.
Considering China’s investment in its own computer chips, the United States is seeking to increase its semiconductor production at home. Furthermore, the company works to strengthen its relationship with South Korea, Taiwan, and Japan in technology. According to Harris, the United States understands that “no one country can satisfy all the world’s demands,” Allies and the U.S. must work together to grow practically.
The CHIPS and Science Act
As part of the CHIPS and Science Act signed by President Biden, semiconductor companies are eligible for grants and incentives worth $52 billion and a tax credit of 25% on investments made in U.S. facilities. Over the next decade, about $200 billion will support research.
There is no doubt that the legislation will be viewed as a contribution to future American leadership. Still, Harris has stressed that Japan will play a critical role in that leadership. Jimmy Goodrich, VP for global policy at the Semiconductor Industry Association, believes there is an excellent opportunity for a future investment involving Japan.