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WASHINGTON — Celebrating $20 billion investment from Intel President Biden tried Friday at a new semiconductor factory in Ohio to restart a stalled element of the economic and national security agenda: a massive federal investment in manufacturing, research and development in technologies that China is also trying to dominate.

With two other key legislative priorities dying in Congress – the Build Back Better Act and legislation to protect voting rights – Mr. Biden moved to push for another bill with substantial bipartisan support.

But it has lost seven critical months since the Senate. passed the measure, an expanding Chinese competition bill that will devote nearly a quarter of a trillion dollars to domestic chip manufacturing, artificial intelligence research, robotics, quantum computing and a host of other technologies. Invoice amounts most comprehensive industrial policy legislation in US history.

Speaking at the White House, Mr. Biden said the United States is in “hard economic and technological competition” with China. While obvious to Americans’ ears, he has deliberately chosen the words, knowing that in recent months Chinese officials have protested the use of the word “competition” by declaring that it has repercussions of Cold War-like rivalry.

“We will insist that everyone, including China, play by the same rules,” Mr. Biden continued. “We’re going to invest whatever it takes in America, in American innovation, in American communities, in American workers.”

He argued that the initiative would be a long-term solution to supply chain disruptions and rising inflation, and would free American weapons systems from being dependent on foreign parts.

After months of rarely mentioning Chinese competition law to avoid focusing on other elements of his agenda, Mr. Biden said on Friday that its passage was necessary “in the name of our economic competitiveness and national security”.

“Today, although we are leaders in chip design and research, we barely manufacture 10 percent of computer chips,” he said. “We don’t currently have the ability to make the most advanced chips.”

By some estimates, the widespread shortage of chips needed to power everything from cars and washing machines to medical equipment and electrical grids has forced some factories to shut down their production lines and slashed a full percentage of U.S. growth last year.

While the Biden administration bills Intel’s new investment near Columbus, Ohio, as a partial remedy to supply chain disruptions that have fueled global chip shortages and fueled inflation, the project will do little to solve any economic problems in the short term. The first-stage Ohio plant, which Intel says could be an investment of up to $100 billion, isn’t expected to be operational until 2025, and many analysts predict chip shortages will begin to subside later this year.

But in addition to the positive headlines for the beleaguered White House, Intel’s plans could help build momentum for a key element of Mr. Biden’s agenda, set aside as lawmakers grapple with ambitious bills on infrastructure, social spending and voting rights. Speaker Nancy Pelosi said on Thursday that House committees will soon begin negotiations with the Senate to put China’s competition law to a vote.

When the bill passed the Senate by a wide margin in June, it was sold partly as a business plan and partly as a move to avoid leaving the United States dangerously dependent on its biggest geopolitical rival.

China is not yet a major maker of the world’s most advanced chips and does not have the capability to make semiconductors with the smallest circuits – partly because it has prevented the United States and its allies from purchasing the lithography equipment needed to make these chips. .

But Beijing is pumping massive government funds to develop the sector, while also expanding its military reach over Taiwan. one of the largest manufacturers advanced chips. China accounted for 9 percent of global chip sales in 2020, barely following the global market share of Japan and the European Union. According to the Semiconductor Industry Association. That was just 3.8 percent of global chip sales five years ago.

At the World Economic Forum this week, European Commission President Ursula von der Leyen said: announced plans It proposes its own legislation early next month to stimulate the development of Europe’s semiconductor industry and anticipate shortages.

Japan, South Korea, India and other countries are also implementing their own incentives to attract a strategically important industry, said John Neuffer, CEO of the Semiconductor Industry Association.

“The clock is ticking,” said Mr Neuffer. “None of us work in a vacuum. This is a global industry.”

Biden’s push to enact China’s competition law comes amid growing frustration in corporate circles with his economic policies towards the country. Managers complain about management still not clear Whether President Donald J. Trump will lift any tariffs it has imposed on China or how to pressure Beijing for further trade concessions.

Known as the U.S. Innovation and Competitiveness Act, the bill passed the Senate contains a set of provisions aimed at spurring the U.S. economy to take over China, but the most important piece is federal investment of $52 billion to encourage chip research, design, and manufacturing. United States.

Supporters say chip financing itself has broad bipartisan support and could pass into law in the next few months; The question is whether other measures included in the package will dampen their hopes. The Senate bill contains a number of trade-related provisions that some House Democrats may oppose, including an investigation into foreign digital trade practices.

The global chip shortage and the accompanying dangerous inflation have made more interest in attracting semiconductor manufacturing in the United States. But whether Congress approves billions of dollars in new funding and how the Biden administration decides to distribute it seems likely to determine whether an investment like Intel’s is a one-time event or a trend.

Companies such as Taiwan Semiconductor Manufacturing Company, Texas Instruments, Micron Technology, and SK Group have all announced their latest expansion in the United States. Samsung has promised 17 billion dollar facility In Texas, GlobalFoundries has committed a second factory in New York.

However, the center of gravity of the global industry is still in East Asia. While responsible for cutting-edge research and designs in the United States chip industry, it has moved from being the world’s largest semiconductor manufacturer a few decades ago to outsourcing its production mostly to Asian factories.

This has proven to be a vulnerability, as pandemic-related shutdowns have left companies worldwide suffering from shortages of workers and raw materials, leading to shortages and spiraling prices for a variety of commodities, particularly semiconductors. Automakers in particular were affected by nearly all major automakers. had to cut production last year.

The shortage of chips has also become one of the biggest factors feeding inflation, and as the midterm elections are approaching, it has become a major complaint among American voters. Inflation hit 40 years peak in December, buoyed by a 37 percent rise in used car prices.

The Biden administration held meetings with semiconductor executives to mitigate chip shortfalls, set up a global alert system to identify shortcomings, and asked chip companies for a wealth of information about potential bottlenecks. The Department of Commerce is expected to make some of this information public before the end of the month.

Intel’s investment is a win for the company, American manufacturing, and “American consumers who can expect lower prices while bringing home the production of semiconductors that protect our economy,” trade secretary Gina Raimondo said on Friday. running.”

But analysts say management has little control over short-term trends in the industry, given the long lead times required to build semiconductor plants.

Mr Neuffer said his industry applauded the White House’s interest in the industry, including encouraging companies to share more information. “But the truth is, there’s a lot the government can do,” he said. “These are very complex, deep global supply chains, and the market will have to overcome that.”

Catie Edmondson contributing reporting.