US tries to take on China with $280bn tech investment

US President Joe Biden has signed a law committing $280 billion to high tech manufacturing and scientific research amid fears China gradually becoming global tech superior overtaking the United States.

The investments include tax breaks for companies that build computer chip manufacturing industries in the United States.

Citing the need to reduce reliance on China_ business groups have long asked for more government support. Global chip shortage has increased the urgency of their calls.

Top Senate Democrat Chuck Schumer said that the bill was a "game changer" that would ensure American leadership and prosperity in the next century.

"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 currently produces roughly 10 per cent of the global supply of semiconductors_ which are key to everything from cars to mobile phones_ down from nearly 40 per cent in '90s.

Not only US_ but other countries are planning to boost investment in the industry. The European Union (EU) said it would commit more than ¬ 40 billion to boost production of computer chips_ while China has also been boosting its investments in science and technology.

The Chinese Embassy in the US had opposed the semiconductor bill_ calling it reminiscent of a "Cold War mentality."

In addition to the chip investments_ the bill directs about $200 billion to agencies such as the National Science Foundation_ aiming to boost investments in fields like robotics and wireless communications.

President Biden called the decision a "once in a generation" investment and said it was already yielding growth in the country_ pointing to plans from Micron to spend $40 billion on memory chip manufacturing_ a project expected to create 40_000 jobs.