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Biden Signs Law To Exempt Certain US Chipmaking Facilities From Federal Environmental Reviews Under CHIPS Act

Benzinga Neuro
October 03, 2024

In a significant move for the semiconductor industry, President Joe Biden has enacted legislation that exempts certain U.S. chip manufacturing facilities from federal environmental reviews.

What Happened: This new law, affects projects benefiting from government subsidies under the $52.7 billion CHIPS Act of 2022. The legislation aims to prevent potential delays that could arise from additional federal environmental reviews mandated by the National Environmental Policy Act of 1969, Reuters reported.

Proponents argue that these projects have already complied with existing federal, state, and local environmental regulations.

The U.S. Commerce Department has allocated over $35 billion for 26 projects, including substantial grants to companies like Samsung Electronics Co Ltd. (OTC:SSNLF), Intel Corp. (NASDAQ:INTC), and Micron Technology Inc. (NASDAQ:MU), to boost domestic chip production.

While the White House maintains its commitment to environmental standards, groups such as the Sierra Club emphasize the importance of reviews for community and worker safety.

The bipartisan legislation, co-authored by Senators Sen. Mark Kelly (D-Ariz.) and Sen. Ted Cruz (R-Texas), seeks to enhance U.S. semiconductor manufacturing by avoiding unnecessary delays.

See Also: Tech YouTuber MKBHD Responds After Facing Massive Backlash Over His New $12 A Month Wallpaper App

Why It Matters: The semiconductor industry is at the forefront of technological advancements, and the demand for chips has surged due to the rise of artificial intelligence and other tech innovations.

Recent market trends show that semiconductor stocks, including those of Nvidia Corp. (NASDAQ:NVDA) and Micron Technology, have experienced fluctuations amid broader economic factors.

Moreover, the tech industry’s push towards AI has raised concerns about environmental sustainability. Companies like Microsoft Corp. (NASDAQ:MSFT) have faced challenges in balancing AI advancements with carbon-neutral goals.

Read Next:

  • Elon Musk’s X Suspends 5.3M Accounts, Flags 10.6M Posts In First Transparency Report Amid User And Advertiser Decline

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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