July 29, 2022—This week, the Senate and the House passed a bill that aims at encouraging semiconductor companies to build plants on United States soil.
According to Forbes, the so-called "CHIPS plus" bill passed by a 64-33 vote on Wednesday.
The bill includes $52.7 billion towards domestic chip manufacturing and research subsidies as well as $2 billion for less advanced legacy chips. The latter are the kind of chips that are of high importance to the military and the automotive industry.
In addition to these funds, the bill also proposes a 25 percent tax credit for United States semiconductor manufacturing investments. The bill also includes $1.5 billion to develop technology that would help United States-based manufacturing plants to cut off foreign telecommunications equipment.
Supporters believe that this bill could help the global chip shortage and would make the United States more competitive in this sector, as compared to the current leader, China.
“America invented the semiconductor. It’s time to bring it home,” President Biden said in a meeting earlier this week, according to Forbes.
In a update Thursday evening, the Washington Post reported that the House has also passed the bill in a 243-187 vote with bipartisan support. Next, it will move to President Biden's desk.
This news brief has been edited to reflect an update that the Senate and House have both passed the bill.
