USA equips itself in the tech competition with China: package worth billions

USA equips itself in the tech competition with China: package worth billions

Even Republicans and Democrats agree on that. The US Senate wants spend around $ 250 billion on technological development. The goal: to triumph in competition with China.

With bipartisan approval, the US Senate passed a bill that, among other things, is intended to promote the manufacture of semiconductors. The draft plans to spend $ 250 billion on technological research and development and aims to counter China’s influence. The world is in the toughest competition since the end of World War II, said the Democratic majority leader in the Senate, Chuck Schumer, after the vote on Tuesday. “If we do nothing, our days as the dominant superpower could be numbered.”

US President Joe Biden welcomed the Senate vote. However, the bill is still lacking the approval of the House of Representatives, where according to the US media there could be resistance. The law will enable the US to “discover, manufacture and improve the most important technologies of tomorrow – from artificial intelligence to computer chips to lithium batteries used in smart devices and electric vehicles – right here in the United States States, “explained Biden.

According to the White House, the proportion of semiconductor manufacturing capacity in the US has fallen from 37 percent 20 years ago to around 12 percent of global production. US companies are dependent on foreign countries, in particular on countries in Asia, which is a risk in the supply chain.

Currently, many automakers and electronics manufacturers are struggling with not enough chips on the market. Among other things, the surge in demand for notebooks and other computer technology during the pandemic led to the shortage of semiconductors.

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Author: Killian Jones
Graduated From Princeton University.He has been at the USTV since 2017.
Function: Chief-Editor

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