A bipartisan bill to bolster domestic semiconductor manufacturing and boost U.S. competitiveness with China has cleared a key Senate vote, setting it up for final passage in the chamber, reports CNBC. And President Joe Biden during a meeting at the White House urged Congress to “pass this bill as soon as possible.”
Last year some of the world’s biggest chip buyers — including Apple, Microsoft, and Google — and top chip-makers such as Intel created the the Semiconductors in America Coalition to press for government chip manufacturing subsidies.
The coalition has been lobbying the U.S.government to fund the CHIPS for America Act which aims to provide US$52 billion for chip manufacturing. The act includes a range of federal investments to advance U.S. semiconductor manufacturing, including $10 billion for a new federal grant program that would incentivize new domestic semiconductor manufacturing facilities. The bill also includes a refundable investment tax credit for the purchase of new semiconductor manufacturing equipment and other facility investments.
“Robust funding of the CHIPS Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them,” said a letter sent by the coalition to Democratic and Republican leaders in the House of Representatives and the Senate. However, the lobbying group adds that the “government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage.”
