USA plan to invest hundreds of billions of dollars in AI, semiconductors and more

The US Senate Commerce Committee is expected to approve the Endless Frontier Act (EFA) next week. The bill was introduced in May 2020 and plans to invest 100 billion US dollars within five years for scientific research on basic and advanced technologies.

According to a previous report by Reuters, the US Senate Commerce Committee held a hearing on the “Endless Frontier Act” on April 14.

U.S. Democratic Congressman Chuck Schumer said: “The Republican and Democratic parties agree that the United States must invest in future technologies to defeat China in the competition.” He will promote this “emergency expenditure” to implement last year’s U.S. National Defense Act. Semiconductor manufacturing clauses in. Another sponsor, Republican Rep. Mike Gallagher (Mike Gallagher) said that the United States’ superiority in technology is “in danger.”

The bill also requires the U.S. Department of Commerce to allocate approximately US$10 billion to invest in at least 10 local technology centers to establish a supply chain crisis response plan.

1. Where are the 100 billion U.S. dollars used?

The “Endless Frontier Act” was initiated by U.S. Senate Democratic leader Chuck Schumer, Republican Senator Todd Young, and others. This bill represents the U.S. government’s vigorous support for the research work of private enterprises and universities in advanced technology with federal funding.

In addition to hundreds of billions of dollars, the US government has other funds to invest in scientific research.

In February of this year, US President Joe Biden said that global semiconductor shortages have forced US automakers and other manufacturers to reduce production. He will seek US$37 billion in funding to pass legislation to promote the development of US chip manufacturing.

The main content of Biden’s 2.3 trillion US dollars infrastructure bill (Guosen Securities Economic Research Institute)

The US Information Technology and Innovation Foundation stated: “The Endless Frontier Act is a clear piece of legislation designed to restore the United States’ competitiveness in the next 10 key advanced technology industries, such as biotechnology, clean energy, and semiconductors.”

2. Origin of the “Endless Frontier Act”

The bill was named “Endless Frontier” in memory of American scientist Vannevar Bush.

Vannevar Bush is known as the “Godfather of the Information Age”, the pioneer of analog computers, and the leader of military research projects such as the “Manhattan Project”. He played a key role in the United States’ victory in World War II.

In July 1945, Vannevar Bush submitted a report to the then-U.S. President Truman. The name of the report was “Science, The Endless Frontier.”

There is a famous saying in the report: “Basic research is the pacemaker of technological progress.”

Conclusion: The bill intensifies technological competition between China and the United States

Since Biden took office, various think tanks in the United States have made suggestions for them, calling for increased investment in the field of science and technology and competition in multiple fields. The Sino-US science and technology war has intensified. A few days ago, the US Department of Commerce once again included seven Chinese supercomputer entities on the “entity list” on the grounds of so-called “national security”.

It is understandable that the United States has developed technology, but it does not have to regard China as an imaginary enemy. Under the trend of international science and technology wars, Chinese technology companies have both challenges and opportunities.

|VIA|