ICYMI: Financial Times: "US manufacturing commitments double after Biden subsidies launched"

According to data compiled by the Financial Times, "companies have committed more than $200bn to US manufacturing projects" since Congress passed the Inflation Reduction Act and the CHIPS and Science Act – landmark pieces of legislation under President Biden's Investing in America agenda that are unleashing a manufacturing and innovation boom, creating jobs, and advancing U.S. competitiveness. The Financial Times adds, "The investment in semiconductor and clean tech investments is almost double the commitments made in the same sectors in the whole of 2021, and nearly twenty times the amount in 2019."

The Financial Times "tracked more than 75 manufacturing projects worth at least $100mn each for plants to make semiconductors, electric vehicles, batteries, and renewable energy components, that have been announced since the bills became law in August. The announcements would create about 82,000 jobs, according to the analysis. More projects are expected to be announced in the coming months as the US government provides more guidance on the tax credits."

President Biden's economic plan is growing the economy from the bottom up and the middle out—not top down—by investing in American manufacturing and creating good-paying jobs, many of which don't require a four-year degree. Since President Biden took office, private companies have announced over $435 billion in manufacturing and clean energy investments and over 12.6 million jobs have been created.

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Financial Times: US manufacturing commitments double after Biden subsidies launched
[Amanda Chu and Oliver Roeder, 4/16/23]

Companies plan to spend over $200bn on clean technology and semiconductors following IRA and Chips Act

Companies have committed more than $200bn to US manufacturing projects since Congress passed sweeping subsidies last year, as president Joe Biden's effort to spark a new industrial revolution gains momentum.

The investment in semiconductor and clean tech investments is almost double the commitments made in the same sectors in the whole of 2021, and nearly twenty times the amount in 2019, according to data compiled by the Financial Times.

While the FT identified four projects worth at least $1bn each in these sectors in 2019, there were 31 of that size after August 2022.

There has been more than $40bn in planned capital spending since the start of the year. Asian giants LG, Hanwha, and LONGI have all announced deals in the past month, taking total large-scale investments to $204bn on April 14.

"We see right now the tectonic plates are shifting with respect to investment in the United States," said US energy secretary Jennifer Granholm this week, referring to the surge of investment in recent months.

The Inflation Reduction Act, which became law last August, includes $369bn of tax credits for clean technologies as the Biden administration of pledges to decarbonise the US economy. Another law passed last August, the Chips and Science Act, includes $39bn in funds to stimulate semiconductor manufacturing and $24bn worth of manufacturing tax credits. Both are also designed to break US dependence on Chinese supply chains.

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The FT tracked more than 75 manufacturing projects worth at least $100mn each for plants to make semiconductors, electric vehicles, batteries, and renewable energy components, that have been announced since the bills became law in August.

The announcements would create about 82,000 jobs, according to the analysis. More projects are expected to be announced in the coming months as the US government provides more guidance on the tax credits.

"The magnitude of these investments together is pretty staggering," said Cullen Hendrix, senior fellow at the Peterson Institute for International Economics. "This is attempting to go from zero to 100 miles an hour in terms of supply chain development in a way that we haven't seen in quite a while."