The House of Representatives passed the CHIPS and Science Act of 2022 with bipartisan support, paving the way for President Joe Biden to sign the Bill into law.
Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which will further boost U.S. manufacturing sector and global competitiveness, was approved by 243-to-187 votes. The Bill received the support of 24 House Republicans, an indication of broader support for efforts to kickstart domestic semiconductor production in the United States.
The CHIPS & Science Act will invest $280 billion in domestic semiconductor manufacturing sector and science and technology innovation.
It includes provisions that will help lower costs for American consumers by alleviating the shortage of chips that has driven up prices across the nation; Create hundreds of thousands of good-paying jobs building advanced manufacturing facilities in the United States; End American dependence on foreign manufacturers, especially China; bolster the United States’ scientific research and technological leadership, and strengthen economic and national security.
The bill provides a 25 percent tax credit for U.S. facilities that produce semiconductors or chip making equipment and $52 billion in funding for new semiconductor programs. The funding includes $39 billion for grants available to semiconductor manufacturers as well as equipment and materials suppliers and $11 billion for federal semiconductor research programs.
The United States has been depending heavily on foreign manufacturers for semiconductors that are key components in the production of several essential goods – from military equipment to cars, to microwaves.
President Biden, who is a staunch proponent of the legislation, said the House passed a bill that will make cars, appliances and computers cheaper.
“The CHIPS and Science Act is exactly what we need to be doing to grow our economy right now. By making more semiconductors in the United States, this bill will increase domestic manufacturing and lower costs for families. And, it will strengthen our national security by making us less dependent on foreign sources of semiconductors. This bill includes important guardrails to ensure that companies receiving tax payer dollars invest in America and that union workers are building new manufacturing plants across the country,” he said in a statement.
Rep. Adam Schiff (D-Calif.) said, “For the last several years, we’ve been outstripped by foreign manufacturers who’ve invested billions of dollars in critical fields, while American investments have failed to keep up. Today, we are moving to close that gap.”
The CHIPS and Science Act is supported by national business groups including the U.S. Chamber of Commerce and the National Association of Manufacturers (NAM); national labor unions including North America’s Building Trades Unions (NABTU) and United Auto Workers (UAW); and SEMI, the industry association serving the global electronics design and manufacturing supply chain.
Source: Read Full Article