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Chipmakers eager to receive huge subsidies stood with President Joe Biden as he signed a bill injecting $52.7 billion into their industry today. Executives from companies like Micron, Intel, HP, and Lockheed Martin witnessed the flick of Biden's pen, alongside auto industry leaders and other stakeholders. They are hopeful that these new subsidies will end "a persistent shortage" in memory chips that Reuters reports has affected "everything from cars, weapons, washing machines, and video games."

In total, the CHIPS and Science Act—also known as the Creating Helpful Incentives to Produce Semiconductors for America Act—authorizes up to $200 billion in subsidies over 10 years, should the US decide to continue investing. The long-term vision is to shove the US ahead of China and other invested countries in a global race to become a chip industry leader.

Once the law is enacted, the Department of Commerce will decide on rules for how grants will be disbursed, dictating who gets how much money and for how long. Because advanced semiconductor production that's necessary for chipmaking requires a significant investment of time and money, venture capitalists have been less likely to fund long-term projects. This law positions the federal government to fill that funding gap while advancing highly coveted technology domestically.