US politicians approved legislation designed to help the nation better compete against China by boosting domestic production of semiconductors, with a revised version of the plan unveiled in 2020 now facing one last hurdle before being presented to President Joe Biden for final approval.
A majority of senators approved the CHIPS and Science Act, originally dubbed CHIPS for America Act, paving the way for a vote by the House of Representatives, which various news outlets speculate could happen this week.
From there, President Biden would face a ticking clock to sign it into law because Congress adjourns in early August.
Reuters reported the bill includes subsidies of around $52 billion to boost US semiconductor production and an estimated $24 billion investment tax credit for chip plants.
Senator Chuck Schumer tweeted the bill offered various benefits.
NEW: The Senate has passed the Chips and Science bill—one of the largest investments in science, tech, and manufacturing in decades!
This will create good-paying jobs, make microchips in the USA, alleviate clogged supply chains, boost America’s security interests, & lower costs.
— Chuck Schumer (@SenSchumer) July 27, 2022
The CHIPS and Science Act also authorises more than $170 billion over five years to spur the innovation and development of other US technologies, though Reuters noted Congress still needed to pass separate funding approvals for these elements.
In 2021, the Senate approved the original $250 billion bill for the domestic chip industry, but the House of Representatives never voted on it.
The delay reportedly led to Intel halting work on a new factory and Taiwan Semiconductor Manufacturing Co predicting longer construction times on one of its sites.Subscribe to our daily newsletter Back