WASHINGTON: The US Senate on Wednesday passed sweeping legislation to subsidise the domestic semiconductor industry, hoping to boost companies as they compete with China and alleviate a persistent shortage that has affected everything from cars to weapons and video games.
The Senate passed the long-awaited bill by 64 to 33. The House of Representatives is expected to approve it as soon as later this week, which would send it to the White House for President Joe Biden to sign into law.
The long-awaited “Chips and Science” act provides $52 billion in government subsidies for US semiconductor production as well as an investment tax credit for chip plants estimated to be worth $24 billion.
The legislation would also authorise more than $170bn over five years to boost scientific research efforts to better compete with China. Congress would still need to pass separate appropriation legislation to fund those investments.
“This legislation is going to create good paying jobs, it will alleviate supply chains, it will help lower costs, and it will protect America’s national security interests,” the Senate’s Democratic majority leader, Chuck Schumer, said, urging support for the bill.
Published in Dawn, July 28th, 2022
