The Biden administration has released new details of its strategy for spending $50 billion in funding under. President Joe Biden in early August to help boost the US chip manufacturing industry amid a .
As part of a plan toand protect national security interests, the CHIPS Act prohibits US tech companies that receive federal funding from building new, advanced factories in China for at least 10 years.
"Companies who receive CHIP funds can't build leading-edge or advanced technology facilities in China for a period of 10 years," Secretary of Commerce Gina Raimondo said in a press briefing Tuesday. "Companies who receive the money can only expand their mature node factories in China to serve the Chinese market."
One of the main objectives of the CHIPS Act is to "establish and expand domestic production of leading-edge semiconductors in the United States" to help reduce reliance on foreign producers like China, Raimondo said. "The United States consumes more than 25% of the world's leading-edge chips and produces zero of those chips."
The White House didn't immediately respond to a request for comment.