According to US President Joe Biden, IBM's $20 billion investment in the Hudson River Valley of New York will help the country achieve a technological advantage over China, according to a report by the South China Morning Post.
The enactment of a US$280 billion package this summer, which is aimed at advancing the semiconductor industry and scientific research, was hailed by the president as the catalyst for a bigger industrial boom, especially with the inclusion of IBM's investment.
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WASHINGTON, DC - OCTOBER 6: U.S. President Joe Biden speaks to reporters before boarding Marine One on the South Lawn of the White House October 6, 2022 in Washington, DC.
Global Leader in Cutting-Edge Chips
Biden stated in Poughkeepsie that the law was necessary for both national and economic security and noted that the Chinese Communist Party actively advocated against it.
The president added that this bill will ensure that the US maintains its position as a global leader in the manufacturing of these cutting-edge chips.
IBM plans to invest US$20 billion over the next ten years in the research, development, and production of semiconductors, artificial intelligence, and quantum computing.
IBM's announcement of its investment follows Micron's plan to pour up to $100 billion for the next two decades to establish a plant in upstate New York that might generate 9,000 factory jobs.
Biden has attempted to capitalize on the investment announcements ahead of the House midterm elections next month. He visited Ohio last month to give a speech near the location of Intel Corp.'s proposed $20 billion semiconductor manufacturing facility.
The Hudson Valley, where IBM's Poughkeepsie facility is located, was a major economic force in America throughout the Industrial Revolution, but as businesses moved to less expensive locales, the region's employment opportunities decreased, as per SCMP.
IBM said it now intends to make the location a global hub of the company's quantum computing development after thousands of local workers were laid off when it relocated chip and other production in the 1990s.
However, a thorough analysis of IBM's US$20 billion investment plans was not provided.
US Restrictions on Chinese AI and Supercomputing Firms
Biden's statement also comes at the heels of the White House's plans to levy more restrictions on China's access to advanced chips, citing fears that they may be used for Beijing's military purposes.
This will add another layer of trade limits that already blocked companies from selling US-developed technologies to Chinese entities such as Huawei, which former President Donald Trump imposed in 2019.
According to sources who spoke to The New York Times, President Joe Biden is likely to impose such limitations on more Chinese businesses, government research facilities, and other organizations.
The sale of any technology developed in the United States to the targeted organizations may subsequently be outlawed by companies around the world, according to the report.
The rules may affect governmental organizations, educational institutions, and internet powerhouses like Alibaba and Tencent.
China is the country with the most systems, despite the US having the Top500 supercomputer list's highest performance.
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Written by Joaquin Victor Tacla
