Biden Signs $280B CHIPS Act in Bid to Boost US over China

US President Joe Biden walks over to a table to sign H.R. 4346, the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, DC on August 9, 2022. (AFP)
US President Joe Biden walks over to a table to sign H.R. 4346, the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, DC on August 9, 2022. (AFP)
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Biden Signs $280B CHIPS Act in Bid to Boost US over China

US President Joe Biden walks over to a table to sign H.R. 4346, the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, DC on August 9, 2022. (AFP)
US President Joe Biden walks over to a table to sign H.R. 4346, the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, DC on August 9, 2022. (AFP)

President Joe Biden on Tuesday signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing, part of his administration's push to boost US competitiveness over China.

Flanked by scores of lawmakers, union officials, local politicians and business leaders, Biden feted the legislation, a core part of his economic agenda that will incentivize investments in the American semiconductor industry in an effort to ease US reliance on overseas supply chains for critical, cutting-edge goods.

“The future of the chip industry is going to be made in America,” Biden said in a sweltering Rose Garden ceremony Tuesday, referring to the diminutive devices that power everything from smartphones to computers to automobiles. The legislation sets aside $52 billion specifically to bolster the US computer chip sector.

The bill has been more than a year in the making, but finally cleared both chambers of Congress late last month with significant bipartisan margins. The Senate passed it 64-33, with 17 GOP senators supporting it, while the House quickly followed suit with a 243-187 vote that included 24 House Republicans in favor, even though party leaders began urging their ranks to vote against it after Democrats advanced a separate sweeping bill focused on climate and health care.

The White House sought Tuesday to begin selling the immediate impacts of the semiconductor measure, noting that Micron, a leading US chip manufacturer, will announce a $40 billion plan to boost domestic production of memory chips, while Qualcomm and GlobalFoundries will unveil a $4.2 billion expansion of an upstate New York chip plant.

The administration has also repeatedly portrayed this legislation as a critical component in countering the influence of a rising China and ensure the US can maintain a competitive edge against Beijing, particularly in semiconductor manufacturing. Administration officials have held multiple briefings for lawmakers to sketch out the national security implications of this bill, and Biden noted during his remarks Tuesday that the Chinese government had lobbied US businesses against the legislation.

“The CHIPS and Science Act is going to inspire a whole new generation of Americans to answer that question: What next?” Biden said Tuesday during the signing ceremony. “Decades from now, people will look back at this week and all we passed and all we moved on, that we met the moment at this inflection point in history.”

Tuesday’s ceremony is one of several public events Biden has scheduled since recovering from COVID-19, including a visit to flood-ravaged Kentucky on Monday and another signing event on Wednesday for legislation aiding veterans who have suffered from toxic burn pits. But Biden appeared to be dealing with some residual symptoms, coughing heavily several times during his remarks and apologizing at one point for doing so.



Apple Inks $500 Million Rare Earth Magnet Deal to Bring Supply Home

A person walks past an Apple store on July 15, 2025, in New York City. (AFP)
A person walks past an Apple store on July 15, 2025, in New York City. (AFP)
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Apple Inks $500 Million Rare Earth Magnet Deal to Bring Supply Home

A person walks past an Apple store on July 15, 2025, in New York City. (AFP)
A person walks past an Apple store on July 15, 2025, in New York City. (AFP)

Apple has signed a $500-million deal with Pentagon-backed MP Materials for a supply of rare earth magnets, one of the first US tech companies to ink an agreement that aims to centralize its supply chain inside the country.

MP shares jumped 26% on Tuesday afternoon trading to a record high, while Apple's stock gained 1%.

The deal, announced on Tuesday, is part of a broader push by Apple to bring iPhone production to the United States amid a push from the Trump administration to produce fewer electronics in China - also marking corporate America's growing alignment with US industrial policy.

MP last week agreed to a multibillion-dollar deal with the US Department of Defense that will see the Pentagon become MP's largest shareholder and financial backstop.

Neither the precise length of the deal nor the specific volumes of magnets to be supplied was provided, although the agreement does call for magnets produced from recycled material, in keeping with Apple's long-standing goal of ending its reliance on the mining industry.

Rare earths are a group of 17 metals used to make magnets that turn power into motion, including the devices that make cellphones vibrate. They are also used to make weapons, electric vehicles, and many other electronics.

China halted rare earths exports in March following a trade spat with US President Donald Trump that showed some signs of easing late last month, even as broader tensions underscored demand for non-Chinese supply.

As part of the agreement, Apple will pre-pay Las Vegas-based MP Materials $200 million for a supply of magnets slated to begin in 2027.

The magnets will be produced at MP's Fort Worth, Texas, facility using magnets recycled at MP's Mountain Pass, California, mining complex, the companies said.

"Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," Apple CEO Tim Cook said in a statement.

Bob O'Donnell, president at market research firm TECHnalysis Research, said Tuesday's move "makes complete sense" given that Apple requires significant amounts of rare earth magnets for its devices.

"Plus, by focusing on a US-based supplier, it does help position Apple more positively in Washington," he said.

Apple, which said the deal is part of its $500-billion four-year investment commitment to the US, has faced threats from Trump over iPhones not made in the US. But many analysts have said making the iPhone in the US is not possible, given labor costs and the existing smartphone supply chain.

Apple, which sold about 232 million iPhones last year, according to data from IDC, did not disclose which devices in which it will use the magnets.

MP said the deal will supply magnets for hundreds of millions of devices, which would constitute a significant share of any of Apple’s product lines, which also include wearable devices such as watches and earbuds.

MP already produces mined and processed rare earths and has said it expects to start commercial magnet production in its Texas facility by the end of this year.

Last week's deal with the US government includes a price floor for rare earths designed to spur investment in domestic mines and processing plants, which has been lagging partly due to low prices set in China.