The U.S. Senate approved the Chips and Science Act (CHIP-plus), financing and stimulating domestic semiconductor production to compete with China. CNBC reports this.
Under the proposal, $52 billion would be allocated from the federal budget to fund American companies that manufacture semiconductors. The legislation also provides additional tax credits and subsidies to spur private investment in the sector.
A number of Republican senators criticized the bill. They said that Democrats are using the measure to push climate, medical and tax issues. Some lawmakers also believe that part of the federal funds provided by the act could end up in China.
Independent Senator Bernie Sanders said chipmakers do not need additional support. The tech giants are already earning excessive profits, the senator said.
The U.S. House of Representatives приняла CHIP-plus by 243 votes to 187. The document now must be signed by President Joe Biden.
President Joe Biden said in a statement that the Senate’s decision was historic. He said the bill would reduce the United States’ dependence on foreign suppliers, lower electronics prices, and create thousands of new jobs.
The president also urged the House of Representatives to approve the document as soon as possible.
According to experts, the expected law is unlikely to have an immediate effect, as it will take years to build new factories. In the near term, these initiatives will not solve the current chip shortage.
However, CHIP-plus could play an important role in American tech manufacturing, experts say. Beyond reducing the likelihood of shortages in the future, it could reduce dependence on Taiwan and other centers of semiconductor production threatened by countries such as China.
Samsung said in May that it plans to invest $356 billion in AI, chips and biotechnology through 2026.
In March, Intel announced the construction of a chip-manufacturing plant in Germany for $19 billion.
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