Biden signs $280 billion CHIPS and Science Act

Illustration by Alex Castro / The Verge

The CHIPS and Science Act was signed by President Joe Biden on Tuesday.

It's a day for builders. Biden spoke at the White House signing ceremony on Tuesday. The CHIPS and Science Act is an investment that will last a long time.

The bipartisan deal to revive American innovation is in opposition to Chinese technological dominance. The shortage has become an incentive for manufacturers to invest in new plants to meet the growing demand for tech products US officials fear that if the government doesn't intervene, chip manufacturers will continue to offshore new foundries to China, leaving little room for the US to profit off of an industry it pioneered decades ago.

The New York Times reported that Intel approached the US Commerce Department with a proposal to take over an abandoned factory in China. The Times confirmed that the plan was suspended by Intel, but that the company had conversations with the administration.

The CHIPs and Science Act was approved by the House and Senate late last month. There are subsidies to encourage chip makers to build plants in the US.

The Secretary of Commerce warned that the US could miss out on the rush to produce more chips. "Semiconductor companies need to get concrete in the ground by this fall to meet this increased demand in the years ahead," Raimondo wrote in a letter to the Secretary of Defense. The CEO's of firms all along the supply chain have made clear that the industry is deciding where to invest now.

Tuesday's funding authorization brings Intel and other chipmakers one step closer to building out plants in states that are dependent on the subsidies.