The supremacy battle between China and the United States has in recent years shifted to the technology front.
Many observers had the feeling that the US was falling behind China, with the Chinese government taking deliberate actions to enhance investments in tech companies and innovations.
Earlier this week, President Joe Biden signed a law committing $280bn to boost high-tech manufacturing and scientific research.
The investments include tax breaks for companies in the chip manufacturing sector, at a time when chip shortage has hit the world.
Senator Democrat Chuck Schumer said that the new law is a “game changer.”
“Authoritarians were cheering for us to lose and hoping we sit on our hands,” he said. “By enacting the CHIPS and Science Act we are making clear we believe another great American century lies on the horizon,” he said.
The US produces about 10% of the global supply of semiconductors. Semiconductors have become key components in the manufacture of phones, cars and other electronic devices. In 1990, the US was leading by production of 40% of semiconductors.
The CHIPS and Science Act of 2022 which initially hit setbacks sailed through both chambers of Congress early this week, opening doors to a new chapter in technology development across various fields.